The Enforcement Directorate has alleged that ₹13,833 crore out of ₹32,825 crore collected from about 25,000 homebuyers in Noida and Greater Noida was diverted to entities including a hospital company, a charitable trust, an expressway venture and other businesses, instead of being used for residential construction. The agency told the Delhi High Court that the alleged diversion meant 42 paise of every rupee collected from homebuyers did not go towards construction.
The submissions were made during the bail hearing of Manoj Gaur, former chairman and managing director of Jaypee Infratech Ltd. Gaur was arrested in November in connection with a 2018 money laundering case involving the alleged diversion of ₹13,800 crore of homebuyers’ money.
After hearing the submissions, Justice Purushaindra Kumar Kaurav observed that no prima facie case for bail had been made out at this stage. The court said a custody period of about nine months could not, prima facie, weigh in favour of Gaur’s release. Arguments on the bail application are scheduled to continue on August 18, when Gaur is expected to respond to the allegations.
₹13,833 Crore Allegedly Diverted From Homebuyers’ Funds
According to the allegations placed before the court, money collected from homebuyers was routed to Jaypee Group subsidiaries and other group entities, including Jaypee Healthcare Ltd, Jaiprakash Sewa Sansthan and Jaypee Sports International Ltd. Funds were also allegedly used for construction of the Yamuna Expressway and routed to entities controlled by Gaur.
The agency claimed that the diverted money moved through six channels, with each allegedly leading to an entity controlled by Gaur.
During the proceedings, the court was also told that Gaur drew ₹48.91 crore as salary from Jaiprakash Associates Ltd between 2009-10 and 2021-22, a period during which the company was allegedly making losses. The submission stated that at its peak, the salary was 93 times the median pay of the company’s own employees.
The case against Gaur and Jaypee Infratech followed complaints filed by homebuyers of the Jaypee Wishtown and Jaypee Greens projects with the Economic Offences Wings in Delhi and Uttar Pradesh.
Agency Cites ₹35,000 Crore Collected by JAL and JIL
According to the prosecution complaint filed in January, Jaiprakash Associates Ltd and Jaypee Infratech Ltd collected more than ₹35,000 crore for the construction and completion of residential projects in Noida and Greater Noida. Of this, close to ₹13,000 crore was allegedly diverted for other purposes.
Several major properties in the Jaypee Greens Wishtown complex in Noida remain incomplete. Most of the project, centred in Sector 128 and spread across Sectors 129, 131, 133 and 134, was booked in 2011.
The allegations before the High Court focus on how funds collected for housing construction were subsequently used and whether money meant for homebuyers’ projects was routed elsewhere.
The court has not granted bail at this stage, with further arguments still pending.
Homebuyer Moves Supreme Court Seeking Monitored Investigation
Separately, 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 into the case.
Sabharwal said her home remained nowhere in sight and that she had not received her money back. Her petition also cited alleged inaction and collusion involving various authorities.
The petition states that after more than seven years, only ₹400 crore has been provisionally attached, which it says represents approximately 2.9 paise for every rupee allegedly diverted.
The Supreme Court has issued notice and sought the Enforcement Directorate’s response to the petition. The matter is scheduled to be heard on September 3.
