New Delhi: The Enforcement Directorate (ED) has arrested Manoj Gaur, Managing Director of Jaypee Infratech Limited, in connection with a money laundering probe involving the alleged diversion of funds paid by homebuyers for flat construction. Sources said the arrest is part of an ongoing investigation into financial irregularities in the Jaypee Group’s real estate projects.
In May, the Enforcement Directorate conducted searches at fifteen locations connected to Jaypee Infratech Ltd. and Jayprakash Associates Ltd., two of Manoj Gaur’s principal real estate development enterprises, as well as their affiliated businesses.
Along with financial records, digital data, and property documents filed in the names of promoters, their relatives, and group companies, officials confiscated hard currency totalling Rs 1.7 crore during the investigation.
As part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA), searches were conducted in Delhi, Mumbai, Noida, and Ghaziabad.
After Jaypee Infratech Limited (JIL) failed to make a payment of more than Rs 526 crore, IDBI Bank initially filed a petition against JIL in the National Company Law Tribunal (NCLT), Allahabad. On August 9, 2017, the NCLT started the insolvency procedure.
Over 21,000 homebuyers who purchased apartments in JIL projects were left in the dark because funds from construction projects, mostly in Wish Town, Noida, had been transferred, which brought the insolvency case national attention.
After the Supreme Court stepped in to defend their rights, the IBC was amended to classify homebuyers as financial creditors and grant them a vote in the resolution process.
Extensive legal proceedings went on in the matter, including disagreements over transactions in which JIL’s assets were mortgaged to pay off the debts of Jaiprakash Associates Limited (JAL), the company’s parent.
The Suraksha Group’s resolution plan was authorised by the National Company Law Appellate Tribunal (NCLAT) in May 2024 following multiple rounds of bidding. As part of the conditions of the land acquisition, Suraksha would finish the unfinished projects and give farmers increased compensation.
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Photo source: IANS/File/Representational
–IANS
