The Enforcement Directorate has arrested Manoj Gaur, Managing Director of a real estate firm Jaypee Infratech Ltd, in connection with a money laundering probe linked to an alleged ₹14,599 crore fraud involving homebuyers, PTI reported on November 13.
The businessman was taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA), they said.
The investigation against him pertains to a case of alleged cheating of home buyers, the officials told PTI.
The agency has alleged that funds collected from home buyers were diverted to various trusts leaving the projects incomplete and investors cheated, the PTI report said.
The ED found that Gaur is the Managing Trustee of Jaypee Sewa Sansthan (JSS), which received part of the diverted funds.
“The ED initiated investigation against Jaypee group on the basis of multiple FIRs registered by the Economic Offences Wings (EOW) of Delhi and Uttar Pradesh Police, based on complaints filed by home buyers of Jaypee Wishtown and Jaypee Greens projects, alleging criminal conspiracy, cheating, and criminal breach of trust against the company and its promoters,” ED said in a statement.
The agency alleged that funds collected from thousands of homebuyers for constructing and completing residential projects were diverted for other purposes, leaving the projects incomplete and the buyers defrauded.
“The ED investigation revealed that out of approximately Rs. 14,599 crore collected by JAL and JIL from home buyers (as per claims admitted by NCLT), substantial amounts were diverted for non-construction purposes and siphoned off to related group entities and trusts, including Jaypee Sewa Sansthan (JSS), M/s Jaypee Healthcare Ltd. (JHL), and M/s Jaypee Sports International Ltd. (JSIL),” the ED statement said.
The ED had conducted searches on May 23 at 15 locations in Delhi, Noida, Ghaziabad, and Mumbai, including the offices and premises of Jaiprakash Associates Ltd. and Jaypee Infratech Ltd.
“During the searches, the ED seized a large volume of financial and digital records, along with documents evidencing the offence of money laundering and diversion of funds,” the ED statement said.