New Delhi, Nov 13 The Enforcement Directorate (ED) has arrested Manoj Gaur, Managing Director of Jaypee Infratech Limited, in a money laundering case linked to the alleged siphoning of money paid by homebuyers for the construction of flats, according to sources on Thursday.
The Enforcement Directorate had in May carried out searches at 15 premises linked to Manoj Gaur's flagship real estate development companies -- Jaypee Infratech Ltd., and Jayprakash Associates Ltd, as well as their associated entities.
During the operation, officials seized hard cash to the tune of Rs 1.7 crore, along with financial records, digital data, and property documents registered in the names of promoters, their family members, and group companies.
The raids were carried out across Delhi, Mumbai, Noida, and Ghaziabad as part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA).
IDBI Bank had first filed a petition against Jaypee Infratech Limited (JIL) in the National Company Law Tribunal (NCLT), Allahabad, after JIL defaulted on a payment of over Rs 526 crore. The NCLT initiated the insolvency process on August 9, 2017.
The insolvency case gained national attention due to over 21,000 homebuyers who had booked flats in JIL projects being left in the lurch as money had been diverted from construction projects, primarily in Wish Town, Noida.
The Supreme Court intervened to protect their interests, eventually leading to an amendment to the IBC that classified homebuyers as financial creditors, giving them a vote in the resolution process.
The case involved extensive legal proceedings, including disputes over transactions where JIL's assets were mortgaged to secure the debts of its parent company, Jaiprakash Associates Limited (JAL).
After several rounds of bidding, the National Company Law Appellate Tribunal (NCLAT) approved a resolution plan submitted by the Suraksha Group in May 2024. Under this plan, Suraksha is to complete the unfinished projects and pay enhanced compensation to farmers as part of the land acquisition terms.
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