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New Delhi, Nov 13 (IANS) The Enforcement Directorate (ED) on Thursday arrested former Jaypee Infratech Ltd CMD Manoj Gaur in a money laundering case related to misappropriation of home buyers’ money and delay in projects around Noida. An officer gave this information.
Gaur, former executive chairman and chief executive officer of M/s Jaiprakash Associates Limited (JAL), was arrested under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002.
The ED investigation found that out of approximately Rs 14,599 crore (as per claims accepted by NCLT) collected from home buyers by JAL and JIL, a large amount was used for non-construction purposes, the official said in a statement.
The ED initiated the investigation against Jaypee Group on the basis of multiple FIRs lodged by the Economic Offenses Wing (EOW) of Delhi and Uttar Pradesh police based on complaints filed by home buyers of Jaypee Wishtown and Jaypee Greens projects alleging criminal conspiracy, cheating and criminal breach of trust against the company and its promoters.
It has been alleged that the money collected from thousands of home buyers for the construction and completion of residential projects was used for purposes other than construction, thereby defrauding the home buyers and leaving their projects incomplete, the ED said in a statement.
The funds were transferred to the respective group entities and trusts including Jaypee Seva Sansthan (JSS), M/s Jaypee Healthcare Limited (JHL), and M/s Jaypee Sports International Limited (JSIL).
The ED said that during the investigation it was also revealed that Manoj Gaur is the managing trustee of JP Seva Sansthan (JSS), which had received part of the diverted funds.
The Enforcement Directorate had on May 23 searched 15 premises belonging to Manoj Gaur’s major real estate development companies – Jaypee Infratech Ltd and Jaiprakash Associates Ltd as well as their associated entities.
The searches were conducted in Delhi, Noida, Ghaziabad and Mumbai, including the offices and premises of M/s Jaiprakash Associates Limited and M/s Jaypee Infratech Limited. During the search, the ED seized a huge amount of financial and digital records, as well as documents proving the offense of money laundering and diversion of funds.
During the operation, officials seized cash worth Rs 1.7 crore along with financial records, digital data and property documents registered in the names of promoters, their family members and group companies.
IDBI Bank had first filed a petition in the National Company Law Tribunal (NCLT), Allahabad, against Jaypee Infratech Limited (JIL) after JIL defaulted in payment of over Rs 526 crore. NCLT initiated insolvency proceedings on August 9, 2017.
The bankruptcy case attracted national attention as over 21,000 home buyers, who had booked flats in JIL projects, were left in the lurch as money was diverted from construction projects mainly in Wish Town, Noida.
The Supreme Court intervened to protect their interests, eventually leading to an amendment to the IBC that classified home buyers as financial creditors, giving them a vote in the resolution process.
The case involved extensive legal proceedings, including a dispute over a transaction where JIL’s assets were mortgaged to secure the debts of its parent company, Jaiprakash Associates Limited (JAL).
After several rounds of bidding, the National Company Law Appellate Tribunal (NCLAT) approved a resolution plan submitted by Suraksha Group in May 2024. Under this scheme, Suraksha is to complete incomplete projects and pay enhanced compensation to farmers as part of land acquisition conditions.
–IANS
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