New Delhi, Jan 7 (IANS) The Directorate of Enforcement's (ED) Delhi Zonal Office has provisionally attached immovable assets worth approximately Rs 400 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with a money laundering probe against the Jaypee Group, an official statement said on Wednesday.
The attached properties belong to M/s Jaiprakash Sewa Sanstha and M/s Page 3 Buildtech Private Limited. The action is part of an ongoing investigation into alleged large-scale fraud and diversion of funds by M/s Jaypee Infratech Ltd (JIL), M/s Jaiprakash Associates Ltd (JAL) and their associated entities, related to housing projects Jaypee Wishtown and Jaypee Greens.
The ED initiated the probe based on multiple FIRs registered by the Economic Offences Wings (EOW) of Delhi and Uttar Pradesh Police on complaints filed by homebuyers. The FIRs allege criminal conspiracy, cheating, and criminal breach of trust by JIL, JAL and their promoters and directors, including Manoj Gaur.
According to the ED, funds collected from thousands of homebuyers for the construction and completion of residential projects were diverted for purposes unrelated to construction, leaving the projects incomplete and the homebuyers defrauded.
The investigation revealed that JAL and JIL collected around Rs 14,599 crore from over 25,000 homebuyers, as admitted before the National Company Law Tribunal (NCLT). A substantial portion of these funds was allegedly siphoned off for non-construction purposes and routed to related group entities, including Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd (JHL), and Jaypee Sports International Ltd (JSIL).
The ED further found that Gaur, who is the Managing Trustee of Jaypee Sewa Sansthan, was a key beneficiary of the diverted funds. The probe also established diversion of assets of JIL and JAL to other entities, including M/s Page 3 Buildtech Private Limited, which is allegedly controlled and beneficially owned by Honey Katiyal.
Earlier, on May 23, 2025, the ED conducted searches at 15 locations across Delhi, Noida, Ghaziabad, and Mumbai, covering offices and premises of JAL and JIL. During the searches, the agency seized voluminous financial and digital records and documents indicating money laundering and fund diversion.
The investigation has established the central role of Gaur in planning and executing the alleged diversion of funds through a complex web of intra-group transactions. He was arrested on November 13, 2025, under Section 19 of the PMLA, following due legal procedure, and is currently in judicial custody.
Further investigation is ongoing.
--IANS
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