ED Tightens Noose on Jaypee Group, Attaches Assets Linked to Homebuyer Fraud

The Directorate of Enforcement (ED) has provisionally attached immovable assets worth approximately ₹400 crore as part of its ongoing money laundering investigation into the Jaypee Group, said a press release on Tuesday.

The attached properties belong to M/s Jaiprakash Sewa Sanstha and M/s Page 3 Buildtech Private Limited and have been seized under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The action is linked to an alleged large-scale diversion of funds collected from homebuyers of Jaypee Wishtown and Jaypee Greens projects.

How Did It Start?

The ED’s probe stems from multiple FIRs registered by the Economic Offences Wings of Delhi and Uttar Pradesh Police following complaints by thousands of homebuyers. The agency alleges that funds collected for construction were siphoned off for non-project purposes, leaving residential projects incomplete.

According to the ED, Jaypee Associates Ltd (JAL) and Jaypee Infratech Ltd (JIL) collected around ₹14,599 crore from over 25,000 homebuyers, as admitted before the NCLT. Investigators claim a substantial portion of this amount was diverted to group entities, including Jaypee Sewa Sanstha, Jaypee Healthcare Ltd, and Jaypee Sports International Ltd.

The agency has also alleged that Manoj Gaur, promoter of the Jaypee Group and managing trustee of Jaypee Sewa Sanstha, played a central role in the diversion of funds through a complex web of transactions.

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