The Directorate of Enforcement (ED) on Thursday arrested the former managing director of Jaypee Infratech (JIL)under the provisions of Prevention of Money Laundering Act (PMLA) for allegedly cheating home buyers.
The ED initiated investigation against Jaypee group on the basis of multiple FIRs registered by the Economic Offences Wings(EOW)of Delhi and Uttar Pradesh Police, based on complaints filed by homebuyers of Jaypee Wishtown and Jaypee Greens projects, alleging criminal conspiracy, cheating, and criminal breach of trust against the company and its promoters.
ED has alleged that the funds collected from thousands of homebuyers for construction and completion of residential projects were diverted for purposes other than construction, leaving the homebuyers defrauded and their projects incomplete.
ED investigation has revealed that out of approximately Rs 14,599 crore collected by Jaiprakash Associates and JIL from homebuyers (as per claims admitted by NCLT), 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 (JHL), and M/s Jaypee Sports International (JSIL).
The ED investigation also revealed that Gaur is the managing trustee of Jaypee Sewa Sansthan, which received part of the diverted funds.
Earlier on May 23, the ED had conducted search operations at 15 locations in Delhi, Noida, Ghaziabad, and Mumbai, including the offices and premises of Jaiprakash Associates JIL. “During the searches, ED seized a large volume of financial and digital records, along with documents evidencing the offence of money laundering and diversion of funds,” the agency said in a statement.
The agency said that investigation has established the central role of Gaur in the planning and execution of the fund diversion through a complex web of transactions within the Jaypee Group and its associated entities.