New Delhi

The Enforcement Directorate (ED) has arrested Manoj Gaur, former Chairman and Managing Director of Jaypee Infratech Ltd (JIL), in a money laundering case of cheating with home buyers.

ED's Delhi zonal office arrested Manoj Gaur, the former Executive Chairman and Chief Executive Officer of Jaiprakash Associates Ltd (JAL), under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002.

Manoj Gaur was arrested early on Thursday following a detailed investigation and analysis of evidence gathered during the ongoing probe in an Enforcement Case Information Report (ECIR) recorded by the ED under PMLA in connection with the Jaypee Group.

ED said it initiated an investigation against the Jaypee group on the basis of multiple First Information Reports 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.

It has been alleged that the funds collected from thousands of homebuyers for the construction and completion of residential projects were diverted for purposes other than construction, leaving the homebuyers defrauded and their projects incomplete.

ED said its investigation revealed that out of approximately Rs 14,599 crore collected by JAL 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), Jaypee Healthcare Ltd (JHL), and Jaypee Sports International Ltd (JSIL).

"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," said the ED in a statement.

Earlier, on May 23 this year, the ED had conducted search operations at 15 locations in Delhi, Noida, Ghaziabad, and Mumbai, including the offices and premises of Jaiprakash Associates Ltd and Jaypee Infratech Ltd. During the searches, the ED seized a large volume of financial and digital records, along with documents evidencing the offence of money laundering and diversion of funds.

READ MORE: Delhi blast: The silent rise of Islamic radicalisation threatens India

"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," added the agency.