ED arrests former chairman of JP Associates Manoj Gaur

New Delhi: The Enforcement Directorate (ED) on Thursday arrested Manoj Gaur, former Executive Chairman and CEO of Jaiprakash Associates Ltd. (JAL) and former Chairman and Managing Director of Jaypee Infratech Ltd (JIL), for his alleged role in a money laundering case linked to fraud with homebuyers.

In a statement, the agency said Gaur was taken into custody after detailed investigation and analysis of evidence gathered under PMLA in connection with the Jaypee Group.

The probe is based on multiple FIRs filed by the Economic Offences Wings of Delhi and Uttar Pradesh Police on complaints from homebuyers of the Jaypee Wishtown and Jaypee Greens projects, alleging criminal conspiracy, cheating and criminal breach of trust by the company and its promoters.


According to ED, funds collected from thousands of homebuyers for construction of residential projects were diverted for non-construction purposes, leaving projects incomplete.

The agency said its investigation showed that of the approximately ₹14,599 crore collected by JAL and JIL from homebuyers (as per claims admitted by NCLT), substantial amounts were diverted and siphoned off to group entities and trusts, including Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd. (JHL) and Jaypee Sports International Ltd. (JSIL). It added that Gaur, as managing trustee of JSS, oversaw an entity that received part of the diverted funds.

On May 23, ED conducted search operations at 15 locations in Delhi, Noida, Ghaziabad and Mumbai, including the offices and premises of JAL and JIL. The searches led to the seizure of financial and digital records and documents evidencing alleged money laundering and fund diversion.

The agency claimed that its investigation has established Gaur's central role in planning and executing the diversion of funds through a complex web of transactions within the Jaypee Group and its associated entities.