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Manoj Gaur, former managing director of Jaypee Infratech Ltd, surrendered at Tihar Jail after a Delhi court rejected his regular bail plea in a money laundering case linked to alleged diversion of over INR 33,000 crore collected from homebuyers. The Enforcement Directorate had arrested him late last year in connection with FIRs filed in Delhi and Uttar Pradesh. The case relates to stalled housing projects in Noida and Greater Noida, affecting thousands of buyers awaiting possession of their homes.
Manoj Gaur, former managing director of Jaypee Infratech Ltd, surrendered before authorities at Tihar Jail after a Delhi court declined his plea for regular bail in an ongoing money laundering investigation. His interim bail period had ended, following which he presented himself before the court and was sent to judicial custody. Advertisement
The case is being investigated by the Enforcement Directorate under provisions of the Prevention of Money Laundering Act. The agency had arrested him late last year based on FIRs registered by police in Delhi and Uttar Pradesh. These FIRs stem from complaints filed by homebuyers alleging cheating and criminal breach of trust in relation to delayed and incomplete housing projects.
According to the ED, funds amounting to more than INR 33,000 crore collected from buyers of residential projects were allegedly diverted for purposes other than construction. The projects include large townships in Noida and Greater Noida developed under Jaypee Infratech and its parent group, Jaiprakash Associates Ltd. Buyers have claimed that despite substantial payments over the years, possession was not handed over within committed timelines.
During the hearing, the court observed that the allegations involved serious financial irregularities and large-scale impact on homebuyers. It noted that the matter required detailed examination and did not find grounds to grant regular bail at this stage. The court also took into account the magnitude of the alleged diversion of funds and the number of affected investors.
Jaypee Infratech had earlier undergone insolvency proceedings before the National Company Law Tribunal after defaulting on loans and failing to complete several projects. The resolution process was closely followed by thousands of homebuyers who were treated as financial creditors under the Insolvency and Bankruptcy Code after amendments to the law.
The surrender of the former managing director adds a significant development to the long-running legal and financial proceedings surrounding the group's real estate projects.
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