Suraksha Group's Financial Misconduct Unveiled in Jaypee Infratech Scandal

The Economic Offences Wing of Delhi Police has filed a case against Suraksha Group for allegedly diverting over Rs 230 crore meant for the construction of Jaypee Infratech flats. This follows an initial report by the Enforcement Directorate, which tagged the firm for misappropriation of funds at JIL.

The Economic Offences Wing (EOW) of Delhi Police has lodged a case against Mumbai's Suraksha Group for allegedly diverting funds exceeding Rs 230 crore, originally allocated for the construction of stalled Jaypee Infratech Ltd flats. This case roots from information shared by the Enforcement Directorate (ED).

The ED intends to file a new FIR against the Suraksha Group after the EOW's recent action. Initially, on June 4, 2024, Suraksha Group took control of JIL after an Insolvency Appellate Tribunal upheld its acquisition bid. The insolvency process, triggered in August 2017 by a consortium led by IDBI Bank, concluded with the NCLT's March 2023 approval of Suraksha's bid.

The ED's investigation highlights serious concerns over the misuse of resources meant for Jaypee homebuyers. The probe underlines delayed equity infusion and fund diversion to linked entities. ED has shared its findings with EOW, highlighting inconsistency in the financial actions of Suraksha Group in line with the NCLT-approved resolution plan.

(With inputs from agencies.)