“It has been alleged that the funds collected from thousands of home buyers for construction and completion of residential projects were diverted for purposes other than construction, leaving the home buyers defrauded and their projects incomplete,” the agency said in a statement.

During investigation, it was found approximately Rs. 14,599 crore collected by JAL and JIL from home buyers (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 that Manoj Gaur is the Managing Trustee of Jaypee Sewa Sansthan (JSS), which received part of the diverted funds.

Earlier, on May 23, 2025, the ED had carried search operations at 15 locations in Delhi, Noida, Ghaziabad, and Mumbai, including the offices and premises of JAL and JIL.

During the searches, ED seized a large volume of financial and digital records, along with documents evidencing the offence of money laundering and diversion of funds.

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.