New Delhi: The Enforcement Directorate (ED) on Wednesday announced that it has provisionally attached assets valued at around ₹400 crore in connection with an ongoing money laundering investigation against the Jaypee Group.
The attached properties are immovable assets seized under the Prevention of Money Laundering Act (PMLA) and belong to Jaiprakash Sewa Sanstha and Page 3 Buildtech Private Limited, the agency said in a statement.
According to the ED, the action is part of a wider probe involving Jaypee Infratech Ltd (JIL), Jayprakash Associates Ltd (JAL), and other related entities. The investigation pertains to alleged large-scale fraud and misappropriation of funds collected from homebuyers in the Jaypee Wishtown and Jaypee Greens housing projects.
The probe was initiated following multiple FIRs filed by the Economic Offences Wings (EOW) of the Delhi and Uttar Pradesh Police. These FIRs were based on complaints from homebuyers who accused the companies and their promoters, including Manoj Gaur, of criminal conspiracy, cheating, and breach of trust.
Investigators allege that money collected from thousands of homebuyers for the construction and completion of residential projects was diverted for purposes unrelated to construction, resulting in stalled projects and significant losses for buyers.
The ED stated that JAL and JIL collectively raised nearly ₹14,599 crore from over 25,000 homebuyers, as per claims admitted by the National Company Law Tribunal (NCLT). A substantial portion of these funds was allegedly siphoned off to other group entities, including Jaypee Sewa Sansthan, Jaypee Healthcare Ltd, and Jaypee Sports International Ltd.
The agency further claimed that Manoj Gaur, the managing trustee of Jaypee Sewa Sansthan, played a key role in the diversion of funds. The investigation also found that assets of JIL and JAL were allegedly diverted to entities such as Page 3 Buildtech Private Limited, which is controlled and beneficially owned by Honeyy Katiyal, founder chairman of real estate consultancy firm Investors Clinic.
Attempts to seek a response from Katiyal were unsuccessful at the time of publication.
The ED concluded that its investigation has established Manoj Gaur’s central role in orchestrating the diversion of funds through a complex network of transactions across Jaypee Group entities. Gaur was arrested on November 13 and is currently in judicial custody.