Inside the ED case that led to the arrest of Jaypee Infra’s former chairman

What is the case?

According to the ED, two companies, M/s Jaiprakash Associates Ltd (JAL) and M/s Jaypee Infratech Ltd (JIL), collected over Rs 33,000 crore for the construction and completion of residential projects in Noida and Greater Noida, but allegedly diverted close to Rs 13,000 crore for other purposes.

“The ED investigation revealed that out of approximately Rs 14,599 crore collected by JAL and JIL from homebuyers (as per claims admitted by the National Company Law Tribunal), substantial amounts were diverted for non-construction purposes and siphoned off to related group entities and trusts, including Jaypee Sewa Sansthan (JSS), M/s Jaypee Healthcare Ltd. (JHL), and M/s Jaypee Sports International Ltd. (JSIL),” the agency had said.

On May 23, 2025, the ED conducted coordinated search operations at 15 locations across Delhi, Noida, Ghaziabad, and Mumbai, including offices of Jaypee Infratech. During these raids, the agency claimed, large volumes of financial and digital records were seized which allegedly provided crucial evidence supporting the charges of money laundering and fund diversion against Gaur.

The agency has claimed that Gaur’s role is central in the planning and execution of the diversion of funds “through a complex web of transactions within the Jaypee Group and its associated entities”. It has also “found” several transactions in which Gaur had been involved.

After listening to the ED’s submissions, the court of Additional Sessions Judge Dhirendra Rana of Patiala House Court said: “The allegations against the accused are serious in nature. He has been instrumental in the administration of JAL, JIL and other subsidiary companies either in the capacity of CEO and Managing Director.”

“It is also a matter of record that hard-earned money of innocent buyers has been invested by him in several companies and 9 FIRs have been registered against him. The amount which is sought to be traced as proceeds of crime is a huge amount and for that purpose detailed and sustained custodial interrogation of the accused is required,” he had said while remanding Gaur to ED custody.

How did the case start?

The case began after homebuyers of Jaypee Wishtown and Jaypee Greens projects filed complaints with the Economic Offences Wings (EOW) in Delhi and UP.

Their primary allegation was that despite paying large amounts of their hard-earned money to purchase homes, the projects were left incomplete and the flats were never delivered. Nearly 20,000 homebuyers have been left in the lurch due to non delivery of their homes.

In April this year, close to a hundred homebuyers of Jaypee’s Wish Town project protested outside Jaypee School in Noida’s Sector 128, citing long delays in the delivery of their homes.

The ED’s case was based on nine FIRs registered from 2017 onwards being investigated by Delhi Police, EOW, and UP Police. In three FIRs, closure reports have been filed by the UP Police, and the others are being investigated.

Currently, the total proceeds of crime are being ascertained and Gaur is being questioned by the ED to uncover the scam. He will be produced again before court on Tuesday, when the ED is likely to submit what they have found while questioning.

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