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ED attaches ₹400-cr assets in probe against Jaypee Group
It has been alleged that the funds collected from thousands of homebuyers for construction and completion of residential projects were diverted for purposes other than construction
NEW DELHI: The Enforcement Directorate (ED) said on Wednesday that it has attached assets worth ₹400 crore as part of its money laundering probe against the Jaypee Group.
The immovable assets attached under the Prevention of Money Laundering Act (PMLA) belong to Jaiprakash Sewa Sanstha and Page 3 Buildtech Private Limited.
“The attachment forms part of an ongoing money laundering investigation involving Jaypee Infratech Ltd (JIL), Jayprakash Associates Ltd (JAL), and associated entities, in relation to large-scale fraud and misappropriation of funds collected from homebuyers for Jaypee Wishtown and Jaypee Greens project,” the agency said in a statement.
ED had launched a probe against the Jaypee group on the basis of multiple first information reports (FIRs) registered by the Economic Offences Wings (EOWs) 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 JIL, JAL and their promoters including Manoj Gaur.
It has been 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 revealed that out of approximately ₹14,599 crore collected by JAL and JIL from more than 25000 homebuyers (as per claims admitted by National Company Law Tribunal), substantial amounts were diverted for non-construction purposes and siphoned off to related group entities including Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd (JHL), and Jaypee Sports International Ltd. (JSIL),” the statement said.
“It has also been revealed during the investigation that Manoj Gaur is the managing trustee of Jaypee Sewa Sansthan (JSS), which received part of the diverted funds. Further, investigation has also established diversion of assets of JIL and JAL by Manoj Gaur to other entities including Page 3 Buildtech Private Limited, which is controlled and beneficially owned by Honeyy Katiyal,” it added.
Katiyal is the founder chairman of property consultant firm - Investors Clinic. HT reached out to Katiyal but did not get a response till the time of print.
“Investigation has established the central role of Manoj Gaur in the planning and execution of the fund diversion through a complex web of transactions within the Jaypee Group and its associated entities,” ED said.
Gaur was arrested on November 13 and is presently in judicial custody.
