ED Nabs Ex-Jaypee Chief in Money Laundering Scam

Manoj Gaur, former chief of Jaypee Infratech and Jaiprakash Associates, was arrested by the Enforcement Directorate in a money laundering probe concerning defrauded homebuyers. Allegations claim diverted funds left residential projects incomplete. This arrest follows extensive evidence collection revealing substantial fund misallocation.

The Enforcement Directorate (ED) has taken former Chairman and Managing Director of Jaypee Infratech Ltd, Manoj Gaur, into custody over a money laundering and cheating case involving homebuyers. The arrest was made under Section 19 of the Prevention of Money Laundering Act, 2002, following an investigation by the ED's Delhi Office.

ED's inquiry into the Jaypee Group stemmed from multiple First Information Reports filed by Delhi and Uttar Pradesh Police's Economic Offences Wings. These reports accused the company and its promoters of criminal activities including conspiracy and fraud, based on grievances from homebuyers linked to Jaypee Wishtown and Jaypee Greens projects.

The probe unearthed that around Rs 14,599 crore collected from homebuyers was largely misallocated instead of financing construction, according to NCLT's claims. Significant sums funneled into related Jaypee entities, such as Jaypee Sewa Sansthan, Jaypee Healthcare Ltd, and Jaypee Sports International Ltd. Searches in May uncovered substantial evidence of financial discrepancies supporting these allegations.

(With inputs from agencies.)