Former JP Infratech MD Manoj Gaur Arrested in ₹14,599-Crore Fraud Case

The Enforcement Directorate (ED) has arrested Manoj Gaur, former managing director of JP Infratech, in connection with an alleged ₹14,599-crore fraud linked to homebuyers’ funds. The agency claims that Gaur played a crucial role in diverting the money collected from thousands of homebuyers, instead of utilizing it for the intended residential projects.

 

ED Alleges Diversion of Homebuyers’ Funds

According to the ED, the amount received from buyers for the construction of residential units was instead routed across various companies and entities associated with the group. The investigation, carried out under the Prevention of Money Laundering Act (PMLA), states that the funds were neither used for construction nor for project completion, leading to severe delays and financial distress among buyers.

 

The ED’s case is based on allegations that JP Infratech failed to deliver homes on time, despite collecting substantial advances. The agency’s findings indicate that these funds were diverted to other branches of the Jaypee Group, including infrastructure development, cement manufacturing, and power projects. Official records, statements from directors, and forensic audits form the basis of these charges.

 

Court Sends Manoj Gaur to Five-Day ED Custody

Following his arrest, Manoj Gaur was produced before a special court, where the ED sought his custody for detailed interrogation. The court granted five days of custodial remand for further investigation.

 

Gaur reportedly stated that he no longer held an active managerial position and claimed he was not directly involved in the financial decisions under scrutiny. The ED, however, maintains that he had significant influence over fund allocation decisions across group companies and that his involvement is central to understanding the full scope of the alleged fraud.

 

Funds Allegedly Used for Non-Construction Purposes

Investigators say that the money collected from homebuyers was transferred across several interconnected entities within the Jaypee Group. Among the companies named in the inquiry are:

• Jaypee Greens,
• Jaypee Associates Ltd.,
• Jaypee Cement,
• Jaypee Power Ventures, and
• Jaypee Infratech’s real estate subsidiaries and trusts.

The ED alleges that these funds were used for purposes unrelated to housing construction, including corporate expenses, loan repayments, and other group business activities. As a result, multiple housing projects remained incomplete for years, leaving buyers without possession of their promised homes.

 

Impact on Homebuyers and Larger Implications

Thousands of homebuyers have been affected by the delays, many of whom have been paying both rent and EMI for years. The diversion of funds, according to the ED, contributed significantly to project stagnation and financial instability within the company.

 

The case adds to the series of large-scale real estate fraud investigations underway in the country, highlighting systemic issues in fund management, regulatory oversight, and corporate governance within the sector.

 

The ED has indicated that further arrests and attachments of properties may follow as the investigation progresses.