Jaypee Group homebuyers’ fraud: ED attaches Rs 400 crore assets in money laundering case

According to ED, funds collected from thousands of homebuyers for the construction and completion of residential projects were allegedly diverted for purposes unrelated to construction, leaving projects incomplete.

The Enforcement Directorate (ED) said Wednesday it has provisionally attached immovable assets worth about Rs 400 crore in connection with its money laundering probe into the alleged diversion of homebuyers’ funds by companies of the Jaypee Group.

In a statement, the ED’s Delhi Zonal Office said the attachment was carried out under the Prevention of Money Laundering Act (PMLA), 2002, and involved assets belonging to Jaiprakash Sewa Sanstha and Page 3 Buildtech Private Limited. The action is part of an ongoing investigation against Jaypee Infratech Ltd (JIL), Jaiprakash Associates Ltd (JAL), and associated entities relating to alleged large-scale fraud in the Jaypee Wishtown and Jaypee Greens housing projects.

The agency said its probe was initiated based on multiple First Information Reports (FIRs) registered by the Economic Offences Wings of the Delhi and Uttar Pradesh Police on complaints filed by homebuyers. The FIRs allege criminal conspiracy, cheating, and criminal breach of trust against JIL, JAL, and their promoters and directors, including Manoj Gaur.

ED claimed that JAL and JIL had collected around Rs 14,599 crore from over 25,000 homebuyers, as per claims admitted by the National Company Law Tribunal. Its investigation found that substantial portions of these funds were diverted for non-construction purposes and siphoned off to related group entities, including Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd (JHL), and Jaypee Sports International Ltd (JSIL).

The agency said Manoj Gaur is the managing trustee of Jaypee Sewa Sansthan, which allegedly received part of the diverted funds. It further alleged that assets of JIL and JAL were diverted by Gaur to other entities, including Page 3 Buildtech Private Limited, which, according to the ED, is controlled and beneficially owned by Honey Katiyal.

The attachment follows searches conducted by the ED on May 23, 2025, at 15 locations in Delhi, Noida, Ghaziabad, and Mumbai, including offices and premises linked to Jaiprakash Associates and Jaypee Infratech. During those searches, the agency said it seized financial and digital records and documents purportedly evidencing money laundering and diversion of funds.

“The investigation has established the central role of Manoj Gaur in the planning and execution of the fund diversion through a complex web of transactions within the Jaypee Group and its associated entities,” ED said in a press release.

Gaur was arrested on November 13, 2025, under Section 19 of the Prevention of Money Laundering Act, and is currently in judicial custody, the agency said.