Jaypee homebuyers gave Rs 32,825 crore. ED says 42 paise of every rupee was diverted
The submissions were made by the ED during the bail hearing of former Jaypee Infratech Ltd CMD Manoj Gaur, with the Delhi High Court observing that no prima facie case for bail was made out.
Money collected from Jaypee homebuyers allegedly went to a Formula One track, a hospital company, a charitable trust and an expressway, the Enforcement Directorate (ED) told the Delhi High Court on Tuesday.
While Rs 32,825 crore was collected from 25,000 homebuyers in Noida and Greater Noida, Rs 13,833 crore was allegedly diverted to these entities, the agency said — meaning 42 paise of every rupee collected did not go towards construction.
The central probe agency, represented by standing counsel Rahul Tyagi, made these submissions during the bail hearing of Manoj Gaur, the former CMD of Jaypee Infratech Ltd. (JIL).
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Gaur was arrested by the ED last November in connection with a 2018 money laundering case involving the alleged diversion of Rs 13,800 crore of homebuyers’ money.
After hearing the ED’s submissions, Justice Purushaindra Kumar Kaurav observed that “no prima facie” case for bail was made out for Gaur. “Mr Tyagi, are you saying Rs 13,000 crore? That is too big an amount… prima facie, no case for bail is made out,” the court said, adding that a custody period of merely nine months could not, prima facie, weigh in favour of Gaur’s release.
The ED claimed the diverted money travelled along six channels, each of them to an entity that Gaur himself controlled.
“Gaur drew Rs 48.91 crore in salary from Jaiprakash Associates Ltd. (JAL) between 2009-10 and 2021-22, years in which the company was making losses, at a peak of 93 times the median pay of its own employees,” Tyagi submitted before the HC.
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The arguments on bail will now be heard on August 18. Gaur is expected to reply to the ED’s submissions.
The case against Gaur and Jaypee Infratech began after homebuyers of Jaypee Wishtown and Jaypee Greens projects filed complaints with the Economic Offences Wings (EOW) in Delhi and UP.
Buyers protest against Jaypee in Noida sector 128 office on saturday. Express Photo by Gajendra Yadav
According to the ED’s prosecution complaint filed in January against Gaur, the two companies, JAL and 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.
According to the ED, homebuyers’ money was allegedly diverted to Jaypee Group subsidiaries and other group entities: Jaypee Healthcare Ltd, Jaiprakash Sewa Sansthan and Jaypee Sports International Ltd, used for construction of the Yamuna Expressway and routed to entities controlled by Gaur.
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Major properties that remain incomplete are in the Jaypee Greens Wishtown complex in Noida. Most properties in the project, which is centred in Sector 128 and is spread across Sectors 129, 131, 133, and 134, were booked in 2011.
Jaypee Group’s Wish Town project in Sector 128 in Noida. Express Photo by Gajendra Yadav.
Petition in SC
Vandana Sabharwal, who booked a flat in the Kasablanca project at Jaypee Wishtown in Noida’s Sector 128, has filed a writ petition in the Supreme Court seeking a court-monitored investigation in the case.
She said her home is nowhere in sight and she hasn’t got her money back either. She also cited the ED’s “inaction” and alleged collusion between various authorities in her petition.
“After over seven years, only Rs 400 crore has been provisionally attached, which amounts to approximately 2.9 paise in every rupee diverted,” the petition states.
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The Supreme Court issued notice and sought the ED’s response to the petition. The matter will now be heard on September 3.
Nirbhay Thakur is a Senior Correspondent with The Indian Express who primarily covers district courts in Delhi and has reported on the trials of many high-profile cases since 2023.
Professional Background
Education: Nirbhay is an economics graduate from Delhi University.
Beats: His reporting spans the trial courts, and he occasionally interviews ambassadors and has a keen interest in doing data stories.
Specializations: He has a specific interest in data stories related to courts.
Core Strength: Nirbhay is known for tracking long-running legal sagas and providing meticulous updates on high-profile criminal trials.
Recent notable articles
In 2025, he has written long form articles and two investigations. Along with breaking many court stories, he has also done various exclusive stories.
1) A long form on Surender Koli, accused in the Nithari serial killings of 2006. He was acquitted after spending 2 decades in jail. was a branded man. Deemed the “cannibal" who allegedly lured children to his employer’s house in Noida, murdered them, and “ate their flesh” – his actions cited were cited as evidence of human depravity at its worst. However, the SC acquitted him finding various lapses in the investigation. The Indian Express spoke to his lawyers and traced the 2 decades journey.
2) For decades, the Jawaharlal Nehru University (JNU) has been at the forefront of the Government’s national rankings, placed at No. 2 over the past two years alone. It has also been the crucible of campus activism, its protests often spilling into national debates, its student leaders going on to become the faces and voices of political parties of all hues and thoughts. The Indian Express looked at all court cases spanning over two decades and did an investigation.
3) Investigation on the 700 Delhi riots cases. The Indian Express found that in 17 of 93 acquittals (which amounted to 85% of the decided cases) in Delhi riots cases, courts red-flag ‘fabricated’ evidence and pulled up the police.
Signature Style
Nirbhay’s writing is characterized by its procedural depth. He excels at summarizing 400-page chargesheets and complex court orders into digestible news for the general public.
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Buyers protest against Jaypee in Noida sector 128 office on saturday. Express Photo by Gajendra Yadav
Jaypee Group’s Wish Town project in Sector 128 in Noida. Express Photo by Gajendra Yadav.