ED Attaches ₹400-Crore Assets Linked To Jaypee Group Probe

New Delhi: The Enforcement Directorate (ED) on Wednesday said it has attached assets worth about ₹400 crore belonging to a trust linked to former Jaypee Infratech managing director Manoj Gaur and a company controlled by Honeyy Katiyal, promoter of leading housing brokerage firm Investors Clinic.

The action, taken under the provisions of the Prevention of Money Laundering Act (PMLA), is part of an ongoing probe into Jaypee group companies, Jaypee Infratech Ltd (JIL) and Jaiprakash Associates Ltd (JAL), and their associated entities. The probe relates to alleged large-scale fraud and diversion of funds collected from homebuyers of the Jaypee Wishtown and Jaypee Greens projects in Noida.

In a statement, the ED said it had issued a provisional attachment order for immovable assets belonging to Jaiprakash Sewa Sansthan (JSS) and Page 3 Buildtech Private Limited, with a combined current market value of around ₹400 crore. The agency did not specify the individual value of assets attached for each entity.

Manoj Gaur, who was arrested by the ED in November and is currently in judicial custody, is the managing trustee of JSS. Page 3 Buildtech, the ED said, is controlled and beneficially owned by Katiyal, founder of Noida-based Investors Clinic.

The agency alleged that both entities received a portion of the homebuyers’ funds that were diverted from Jaypee group companies. While Gaur’s legal representative could not be reached for comment, a response from Investors Clinic was awaited.

Meanwhile, Adani Enterprises has emerged as the successful bidder to acquire Jaiprakash Associates Ltd through the insolvency process. Lenders have approved the Adani Group’s resolution plan, and approval from the National Company Law Tribunal (NCLT) is awaited.

Jaiprakash Associates has interests in construction, power, hotels, real estate and sports management. Separately, Mumbai-based Suraksha Group has acquired Jaypee Infratech Ltd through insolvency proceedings. Jaypee Infratech is primarily engaged in real estate and owns the Yamuna Expressway connecting Noida and Greater Noida to Agra.

The money-laundering case originates from FIRs registered by Delhi and Uttar Pradesh Police based on complaints filed by homebuyers of Jaypee Wishtown and Jaypee Greens projects. According to the complaints, JIL, JAL and their promoters collected funds from thousands of buyers for housing projects but diverted the money, leaving projects incomplete.

The ED said the two Jaypee group companies collected ₹14,599 crore from over 25,000 homebuyers, as per claims admitted by the NCLT, but substantial amounts were allegedly siphoned off to related entities including JSS, Jaypee Healthcare Ltd and Jaypee Sports International Ltd.

“The 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,” the ED alleged.