ED Searches Jaypee Group Offices, Seizes ₹1.70 Crore in Money Laundering Probe

The Enforcement Directorate (ED) seized cash worth ₹1.70 crore along with documents related to immovable properties during search operations in connection with an alleged money laundering case involving Jaypee Infratech Ltd (JIL), Jaiprakash Associates Ltd (JAL), and associated entities. The raids were conducted on May 23 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The searches targeted 15 locations in Delhi, Noida, Ghaziabad, and Mumbai. These included offices and premises connected to JAL, its affiliates, and individuals associated with the companies. The ED's operations extended to the premises of prominent business associates such as Gaursons India Pvt Ltd, Gulshan Homz Pvt Ltd, and Mahagun Real Estate Pvt Ltd.

This enforcement action stems from multiple FIRs filed by the Economic Offences Wings of both the Delhi Police and Uttar Pradesh Police. The complaints allege that companies such as JAL and JIL engaged in large-scale fraud. The FIRs suggest that homebuyers and investors were induced to invest in residential projects like Jaypee Wishtown and Jaypee Greens under false promises of timely allotments and delivery.

The scale of the alleged fraud is estimated at around ₹12,000 crore. Investigations indicate that substantial sums were collected from prospective buyers for flats and plots that were either delayed or never constructed. These actions are now under scrutiny for violations of financial laws, including the alleged diversion of funds and the use of shell entities.

During the course of the raids, authorities seized a significant volume of financial records, digital data, and documents tied to real estate assets. The ED noted that these documents include evidence pointing to the ownership of various properties by company promoters, their family members, and related group companies. The documents are expected to form key evidence in tracing the movement and utilization of the collected funds.

In a regulatory disclosure, Jaiprakash Associates confirmed that the ED had conducted searches at its offices. The company stated that it is cooperating fully with the investigation. It also assured stakeholders that business operations are continuing without disruption. The firm emphasized its intention to provide all relevant information requested by the authorities.

Jaiprakash Associates Ltd is the flagship firm of the Jaypee Group, which has business interests across sectors such as cement, real estate, construction, power, and hospitality. Over the past few years, the group has faced financial distress, leading to insolvency proceedings. Jaypee Infratech Ltd was one of the major arms of the group and had been involved in several large-scale housing projects before defaulting on project delivery timelines and payments to creditors.

Jaypee Infratech has since been acquired by the Suraksha Group under a resolution plan approved by the National Company Law Tribunal (NCLT). However, legal issues surrounding the group’s financial conduct remain ongoing.

The ED’s investigation is aimed at identifying the trail of money collected from homebuyers and whether the funds were used for purposes other than the ones stated. Officials maintain that more documents are being examined, and further actions may follow depending on the outcomes of forensic audits and other analyses.

This development adds to the list of regulatory and legal challenges faced by the Jaypee Group. The outcome of the investigation is expected to influence ongoing litigation and claims by affected homebuyers, creditors, and regulatory bodies.