Skip to main content
← back
Informative

ED Arrests Manoj Gaur (Jaypee Group) in Money Laundering Case.

Update / Judgement Date

12 Nov 2025

Source

WCP News Bulletin

Author

Sakshi Bhardwaj — WCP Legal Desk

Reading Time

2 min read

Financial ManagementOther Legal Matters
ED Arrests Manoj Gaur (Jaypee Group) in Money Laundering Case.
WCP News Bulletin
Headnote:

The Directorate of Enforcement (ED) arrested Manoj Gaur, former Executive Chairman and CEO of M/s Jaiprakash Associates Ltd. (JAL) and former CMD of M/s Jaypee Infratech Ltd. (JIL), under Section 19 of the PMLA, 2002, for his alleged involvement in diversion and siphoning of homebuyers’ funds collected by Jaypee Group entities. The arrest follows findings that substantial portions of ₹14,599 crore collected from homebuyers were diverted to related companies and trusts instead of being used for construction, causing massive financial loss to thousands of homebuyers.


Background:
  1. The ED initiated its investigation on the basis of multiple FIRs registered by the Economic Offences Wings (EOW) of Delhi and Uttar Pradesh Police.
  2. The FIRs alleged cheating, criminal breach of trust, and conspiracy by Jaypee Group companies and promoters concerning housing projects such as Jaypee Wishtown and Jaypee Greens.
  3. ED’s probe revealed that out of approximately ₹14,599 crore collected by JAL and JIL, large sums were diverted for non-construction purposes and transferred to associated entities and trusts, including Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd. (JHL), and Jaypee Sports International Ltd. (JSIL).
  4. Manoj Gaur, as Managing Trustee of JSS, was found to have played a key role in these transactions.


ED’s Findings and Actions:
  1. On 23 May 2025, the ED conducted search operations at 15 locations in Delhi, Noida, Ghaziabad, and Mumbai, seizing extensive financial and digital evidence indicating laundering and fund diversion.
  2. The investigation uncovered a complex web of intra-group transactions designed to siphon off funds meant for construction.
  3. Based on the evidence, Manoj Gaur was arrested on 13 November 2025 after following due legal procedures under Section 19 of the PMLA.


Key Allegations:
  1. Diversion of thousands of crores collected from homebuyers.
  2. Misuse of company funds through trusts and related entities.
  3. Money laundering through layered and complex transactions within Jaypee Group companies.


Current Status:
  1. Manoj Gaur remains under custody following his arrest.
  2. Further investigation is ongoing to trace the money trail and identify additional beneficiaries involved in the laundering network.


Legal Provision Discussed:
  1. Section 19, Prevention of Money Laundering Act, 2002 – Power to arrest for money laundering offences.


Citation: 2025:ED:DEL:1113

Agency: Directorate of Enforcement (ED), Delhi Zonal Office

Date of Action: 13 November 2025

Law Invoked: Prevention of Money Laundering Act, 2002 (PMLA) – Section 19