ED arrests Jaypee Infratech's Manoj Gaur in money laundering case

The Directorate of Enforcement (ED), Delhi Zonal Office, has arrested Manoj Gaur, former Executive Chairman and Chief Executive Officer of Jaiprakash Associates Ltd. (JAL) and former Chairman and Managing Director of Jaypee Infratech Ltd. (JIL), under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. The ED says its 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. 

The arrest took place today after a detailed investigation and analysis of evidence gathered during the ongoing probe in an ECIR recorded by the ED under PMLA in connection with the Jaypee Group.

ED initiated a probe against the Jaypee group based on multiple FIRs registered by the Economic Offences Wings (EOW) of Delhi and Uttar Pradesh Police, based on complaints filed by homebuyers of Jaypee Wishtown and Jaypee Greens projects, alleging criminal conspiracy, cheating, and criminal breach of trust against the company and its promoters. 

Allegations against the Jaypee group

It has been alleged that the funds collected from thousands of homebuyers for the construction and completion of residential projects were diverted for purposes other than construction, leaving the homebuyers defrauded and their projects incomplete.

The ED investigation revealed that out of around Rs 14,599 crore collected by JAL and JIL from homebuyers (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), Jaypee Healthcare Ltd. (JHL), and Jaypee Sports International Ltd. (JSIL). It was revealed during the investigation that Manoj Gaur is the Managing Trustee of Jaypee Sewa Sansthan (JSS), which received part of the diverted funds.

ED searches across 15 locations

Earlier, on May 23, 2025, the ED conducted search operations at 15 locations in Delhi, Noida, Ghaziabad, and Mumbai, including the offices and premises of M/s 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. Further investigation is in progress on the matter.