A major development has emerged in the long-running investigation into alleged fund diversion linked to delayed housing projects in Noida.
Enforcement Directorate on January 7 said it has attached assets worth a combined ₹400 crore as part of its money laundering probe into Jaypee group companies. The assets belong to a trust linked to former Jaypee Infratech Managing Director Manoj Gaur and a company associated with Honeyy Katiyal, promoter of housing brokerage firm Investors Clinic.
The action has been taken under the Prevention of Money Laundering Act and is connected to an investigation into alleged “large-scale fraud” and misappropriation of funds collected from homebuyers of the Jaypee Wishtown and Jaypee Greens projects in Noida. The probe involves Jaypee Infratech Ltd and Jaiprakash Associates Ltd, along with related entities.
According to the agency, a provisional attachment order has been issued against immovable assets owned by Jaiprakash Sewa Sansthan and Page 3 Buildtech Private Limited. The ED said the combined current market value of these assets is ₹400 crore, but did not specify the individual value attributed to each entity.
Gaur, who was arrested by the ED in November and is currently in judicial custody, is the managing trustee of Jaiprakash Sewa Sansthan. Page 3 Buildtech, the agency said, is “controlled and beneficially owned” by Honeyy Katiyal. The ED alleged that both entities received a portion of the funds diverted from homebuyers.
While a response from Investors Clinic is awaited, Gaur’s legal representative could not be reached for comment.
The case has its origins in FIRs filed by the Delhi and Uttar Pradesh Police based on complaints from homebuyers. According to these complaints, Jaypee Infratech, Jaiprakash Associates, and their promoters collected money from thousands of buyers for housing construction but allegedly diverted the funds, leaving projects incomplete.
The ED stated that the two Jaypee group companies collected ₹14,599 crore from more than 25,000 homebuyers, as per claims admitted by the National Company Law Tribunal. It alleged that “substantial” amounts were siphoned off to related entities, including Jaiprakash Sewa Sansthan, 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 agency said.
Separately, Adani Enterprises has emerged as the successful bidder to acquire Jaiprakash Associates through the insolvency process, subject to tribunal approval. Jaypee Infratech has already been acquired by Suraksha Group.
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