The Enforcement Directorate (ED), Delhi Zonal Office, arrested Manoj Gaur, the former Executive Chairman and CEO of Jaiprakash Associates Ltd (JAL) and former Chairman and Managing Director of Jaypee Infratech Ltd (JIL). He is expected to be produced in court this afternoon, with the ED seeking custody to interrogate him further.
Gaur's arrest, under Section 19 of the Prevention of Money Laundering Act (PMLA) 2002, is a major development in the ongoing investigation into alleged financial irregularities within the Jaypee Group.
According to ED officials, the arrest followed a detailed probe based on multiple first information reports (FIRs) filed by the Economic Offences Wings of Delhi and Uttar Pradesh Police.
The complaints stemmed from homebuyers of Jaypee Wishtown and Jaypee Greens projects who accused the company and its promoters of criminal conspiracy, cheating, and breach of trust.
It is alleged that funds collected from thousands of homebuyers, who entrusted their money for the construction and completion of residential projects, were diverted for purposes other than construction. This diversion reportedly left many homebuyers defrauded and their projects incomplete.
The ED investigation uncovered that, out of approximately Rs 14,599 crore collected by JAL and JIL from homebuyers, as per NCLT claims, a significant amount was siphoned off for non-construction purposes.
These funds were transferred to related group companies and trusts, such as Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd (JHL), and Jaypee Sports International Ltd (JSIL).
Manoj Gaur, who is the Managing Trustee of Jaypee Sewa Sansthan (JSS), was found to have played a central role in orchestrating this complex diversion of funds, according to ED officials. The investigation revealed a web of financial transactions implicating Gaur in the misappropriation of the homebuyers' money.
"The investigation has established the central role of Manoj Gaur in the planning and execution of the fund diversion through a complex web of transactions within the Jaypee Group and its associated entities. Manoj Gaur was arrested today, i.e. 13/11/2025, under Section 19 of the PMLA, 2002, after following due legal procedure," ED officials stated.
Earlier this year, on May 23, 2025, the ED conducted coordinated search operations at 15 locations across Delhi, Noida, Ghaziabad, and Mumbai, including offices of Jaiprakash Associates and Jaypee Infratech.
During these raids, officials seized a large volume of financial and digital records, which provided crucial evidence supporting the charges of money laundering and fund diversion.
The ED arrested Manoj Gaur in light of the probe, but stated that further investigations are ongoing.
