New Delhi | November 13, 2025 — A Delhi court on Thursday remanded Manoj Gaur, former Managing Director of Jaypee Infratech Ltd (JIL), to five-day custody of the Enforcement Directorate (ED) in connection with a massive ₹14,599 crore money laundering case involving alleged fraud against homebuyers. The decision comes as the ED intensifies its probe into financial irregularities and alleged diversion of funds collected from homebuyers in Jaypee Group’s residential projects, including Jaypee Wishtown and Jaypee Greens across Noida and Greater Noida.

Gaur, who was arrested by the ED earlier on Thursday, was produced before Additional Sessions Judge Dhirendra Rana, as the agency sought to ensure his custody for detailed questioning and further investigations. The ED had initially requested a seven-day custody period, citing the need to examine multiple transactions, documents, and evidence where Gaur’s role as a senior executive was found to be significant. The former MD was taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA), highlighting the seriousness of the investigation.

According to the ED, the agency’s probe indicates that funds collected from thousands of homebuyers for the construction and completion of residential projects were diverted for purposes other than construction, leaving the projects incomplete and causing substantial financial losses to buyers. During the court proceedings, ED counsel Atul Tripathiinformed the judge that both Jaiprakash Associates Ltd (JAL) and Jaypee Infratech Ltd (JIL) had collected over ₹33,000 crore for the development of residential projects in the National Capital Region, but approximately ₹13,000 crore of this amount was allegedly diverted to other group entities or unrelated purposes, leaving homebuyers stranded.

Tripathi elaborated, “We have discovered several financial transactions where Mr. Gaur’s involvement was established. As one of the key figures across multiple companies within the Jaypee Group, it is imperative for the ED to confront him with these documents and ensure that all lines of inquiry are addressed. For this reason, the agency requested seven days of custody to complete our investigation efficiently.”

However, Gaur’s advocate, Farukh Khan, opposed the ED’s plea for extended custody. He argued that his client had already submitted all relevant documents, cooperated extensively with the agency, and responded to questions during prior investigations. Khan also highlighted Gaur’s age and health concerns, stating that the former MD, aged 61, suffers from diabetes and asthma, which makes prolonged custody a matter of concern. He further noted that Gaur’s statement regarding the allegations had already been recorded by the ED in 2021, indicating that much of the preliminary interrogation had already taken place.

The ED’s investigation into the Jaypee Group was initiated following multiple First Information Reports (FIRs)registered by the Economic Offences Wings (EOW) of Delhi and Uttar Pradesh police. These FIRs were based on complaints filed by homebuyers of the Jaypee Wishtown and Jaypee Greens projects, alleging criminal conspiracy, cheating, and criminal breach of trust by the company and its promoters. The complaints claimed that substantial sums of money collected from buyers for the construction and timely delivery of apartments and residential units were misappropriated or siphoned off instead of being utilized for the intended purpose.

On May 23, 2025, the ED conducted coordinated searches at 15 locations in Delhi, Noida, Ghaziabad, and Mumbai, targeting offices and premises associated with Jaiprakash Associates Ltd and Jaypee Infratech Ltd. The searches were aimed at uncovering evidence of fund diversion and tracing the flow of money to associated companies, trusts, and group entities that allegedly received funds meant for construction. The agency highlighted that significant amounts were channeled to entities including Jaypee Sewa Sansthan, Jaypee Healthcare Ltd, and Jaypee Sports International Ltd, rather than being invested in the residential projects themselves.

The ED has maintained that out of the approximately ₹14,599 crore collected by JAL and JIL from homebuyers, a substantial portion was diverted for non-construction purposes, creating financial and emotional distress for thousands of buyers. The agency has emphasized that as a key executive in both companies, Gaur had a pivotal role in these financial decisions and, therefore, requires thorough questioning to understand the depth of the alleged irregularities.

Experts following the case have noted that the Jaypee Group, which is a major player in the Indian real estate sector, had promised timely completion of its residential projects, attracting thousands of buyers who invested their life savings into these developments. However, delays and incomplete constructions led to legal actions and multiple FIRs, making it one of the most high-profile real estate-related fraud cases in recent years. The ED’s ongoing investigation is seen as a critical step in holding corporate leaders accountable and recovering misappropriated funds.

The enforcement agency has reiterated that the investigation is being conducted under the provisions of the Prevention of Money Laundering Act, which allows the ED to investigate individuals and entities involved in money laundering activities linked to criminal offenses. The agency has the authority to examine financial records, track fund transfers, and confront individuals responsible for the misappropriation of funds. In Gaur’s case, the ED is seeking clarity on financial transactions, fund diversions, and the role of related entities in allegedly siphoning money collected from homebuyers.

Legal observers have noted that the ED’s focus on high-value real estate fraud cases reflects a broader effort to curb financial misconduct in the sector. The Jaypee case, involving thousands of affected homebuyers and transactions exceeding ₹14,000 crore, exemplifies the challenges faced by regulatory agencies in ensuring accountability in large-scale real estate projects. By securing Gaur’s custody, the ED aims to complete interrogations, examine transaction records in detail, and gather evidence to substantiate allegations of money laundering.

The proceedings on Thursday concluded with the court granting the ED five days of custody, slightly less than the seven days initially requested. The agency will now continue its detailed questioning and analysis of documents related to fund diversion and potential links with other entities. This period will be critical for the ED to trace the complete flow of funds and establish the involvement of key executives in the alleged fraudulent activities.

Gaur’s case also underscores the ongoing concerns in India’s real estate sector, particularly regarding timely project completion, fund management, and buyer protection. The ED’s investigation highlights the importance of financial transparency and accountability for companies collecting large sums from the public. By pursuing senior executives like Gaur, the agency aims to send a strong message that misappropriation of funds and failure to deliver on promised projects will be met with stringent legal action.

As the investigation unfolds, the focus remains on uncovering the full extent of fund diversions, identifying additional individuals or entities involved, and ensuring that aggrieved homebuyers receive justice. The case is expected to have wider implications for corporate governance and investor protection in India’s real estate industry.

In conclusion, the remand of Manoj Gaur to ED custody marks a significant step in the ongoing probe into one of India’s largest alleged real estate frauds. With thousands of homebuyers affected and billions of rupees under scrutiny, the investigation is being closely monitored by legal experts, investors, and policymakers. The ED’s next steps, including detailed questioning and analysis of transactions, will be crucial in determining accountability and facilitating potential recovery of diverted funds, while reinforcing regulatory oversight in India’s housing sector.