The arrest was made on November 13 by the ED’s Delhi Zonal Office under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. It follows a detailed investigation into allegations of diversion and misuse of funds collected from thousands of homebuyers of Jaypee’s housing projects.
Later in the evening of November 13, Gaur was produced before the Patiala House Court and sent to police custody for five days.
ED’s Findings: Massive diversion of homebuyers’ funds
According to the ED, its probe revealed that out of approximately ₹14,599 crore collected by Jaiprakash Associates and Jaypee Infratech from homebuyers — as per claims admitted by the National Company Law Tribunal (NCLT) — a substantial portion of the money was diverted for non-construction purposes and siphoned off to related group entities and trusts.
Funds were allegedly routed to Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd (JHL), and Jaypee Sports International Ltd (JSIL) — instead of being used for the construction and completion of residential projects. The agency stated that Manoj Gaur, in his capacity as Managing Trustee of Jaypee Sewa Sansthan, played a central role in the fund diversion through what it described as “a complex web of transactions within the Jaypee Group and its associated entities.”
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The ED initiated its money laundering investigation based on multiple FIRs registered by the Economic Offences Wings (EOW) of Delhi and Uttar Pradesh Police. These FIRs were filed following complaints by homebuyers of the Jaypee Wishtown and Jaypee Greens projects, who alleged criminal conspiracy, cheating, and breach of trust by the company and its promoters.
The funds collected from homebuyers “for construction and completion of residential projects were diverted for purposes other than construction, leaving the homebuyers defrauded and their projects incomplete,” ED said in a press note.
Searches and evidence collection
Earlier this year, on May 23, 2025, the ED had conducted search operations at 15 locations in Delhi, Noida, Ghaziabad, and Mumbai, including the offices and premises of Jaypee Infratech and Jaiprakash Associates.
During these searches, the agency seized a large volume of financial and digital records, including documents that, it said, evidenced the offences of money laundering and diversion of funds. Investigators claimed that the material seized during the searches confirmed the central role of Manoj Gaur in planning and executing the alleged diversion of homebuyers’ funds.
The ED has maintained that the probe is ongoing, with further investigation underway to trace the end-use of the siphoned funds and identify other individuals or entities involved in the suspected laundering network.
Over 20,000 homebuyers awaiting deliveries
The case has its roots in the collapse of one of India’s largest real estate empires. Once considered a real estate giant in the National Capital Region (NCR), Jaypee Infratech Limited went into insolvency in August 2017 after the NCLT admitted an application filed by an IDBI Bank-led consortium.
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At that time, Jaypee Infratech had promised to deliver 32,691 housing units, but only 4,889 units were completed before the insolvency proceedings began. Another 7,278 units were delivered during the resolution process, leaving 20,524 homes pending as of March 31, 2019.
Even today, nearly 20,000 homebuyers remain stuck, many of whom had booked their flats over a decade ago in projects like Jaypee Wishtown and Jaypee Greens. They continue to await delivery amid multiple rounds of insolvency proceedings, court battles, and stalled construction.
For these homebuyers, Manoj Gaur’s arrest represents both, a major development, and a reminder of their prolonged struggle for justice and possession.
Arrest amid bidding for Jaypee Group companies
The timing of the arrest is particularly significant. It comes even as bidding is underway for Jaypee Group companies under insolvency.
The Committee of Creditors (CoC), led by the National Asset Reconstruction Company Limited (NARCL), is currently evaluating five resolution plans submitted for the debt-laden Jaiprakash Associates Ltd (JAL) — the flagship company of the Jaypee Group.
According to people familiar with the matter, Vedanta Group, Adani Group, Dalmia Bharat Group, Jindal Power, and PNC Infratech have submitted bids. Voting on these plans will remain open till November 20, though the deadline could be extended to allow lenders more time to assess the proposals.
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Among the bidders, Vedanta Group is understood to have made the highest offer — around ₹16,000 crore, comprising an upfront payment of ₹3,770 crore and the remainder spread over five years. Adani Group’s offer, at ₹13,500 crore, includes ₹6,005 crore upfront and ₹6,726 crore payable after two years.
While Vedanta’s bid is higher in total value, Adani’s plan carries a greater upfront payment ratio — a factor that may appeal to lenders seeking quicker recovery. Other bidders such as Dalmia Bharat, PNC Infratech, and Jindal Power have offered between ₹6,700 crore and ₹11,600 crore, according to sources.
The outcome of this voting process will determine the future ownership and revival plan for the Jaypee Group’s assets, which include cement units, real estate projects, and infrastructure undertakings.
Insolvency and the larger financial picture
Jaiprakash Associates Ltd, once a flagship infrastructure conglomerate with interests spanning cement, power, and real estate, is also undergoing insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). The company faces admitted claims of ₹57,185 crore from financial and operational creditors, with NARCL as the lead claimant.
Its portfolio includes cement manufacturing facilities, infrastructure projects, and the Noida Sports City development — all now caught in financial and legal uncertainty.
The arrest of Manoj Gaur, therefore, comes at a crucial juncture for the Jaypee Group — not only complicating the ongoing insolvency process but also reigniting questions about corporate accountability, fund diversion, and the fate of thousands of middle-class homebuyers who continue to pay EMIs for homes that were never built.
Ongoing investigation
The ED, in its statement, has said that Gaur’s arrest followed “a detailed investigation and analysis of evidence gathered during the ongoing probe.” He was arrested after following due legal procedure and will be produced before a special court under the PMLA.
With further investigation underway, officials said the agency will continue to examine financial trails and related transactions to establish the complete extent of fund diversion within the Jaypee Group.