On May 23, 2025, the Enforcement Directorate (ED) conducted extensive searches at 15 locations across Delhi, Noida, Ghaziabad, and Mumbai. These raids targeted offices and premises associated with Jaypee Infratech Ltd (JIL), Jaiprakash Associates Ltd (JAL), and other related entities, including Gaursons India Pvt Ltd, Gulshan Homz Pvt Ltd, and Mahagun Real Estate Pvt Ltd. The action was taken under the Prevention of Money Laundering Act (PMLA) in connection with an alleged ₹12,000 crore fraud involving homebuyers' funds.

Findings from the Raids

During the searches, the ED seized ₹1.70 crore in cash and documents related to immovable properties held in the names of promoters, their family members, and group companies. The investigation stems from FIRs registered by the Economic Offences Wing (EOW) of Delhi Police and Uttar Pradesh Police against JAL, JIL, and their promoters and directors. The FIRs allege large-scale fraud and criminal conspiracy, including dishonest inducement of homebuyers and investors to invest funds under the pretext of allotment of residential apartments and plots in projects such as Jaypee Wish Town and Jaypee Greens.

Allegations of Fund Diversion

Homebuyers have accused Jaiprakash Associates of diverting over ₹10,000 crore from its subsidiary, Jaypee Infratech, to fund other projects like the Yamuna Expressway. A forensic audit report by ASA Financial Services indicated that Jaypee Infratech spent a minimum of ₹13,283 crore on the construction and development of the Yamuna Expressway, translating to ₹80.50 crore per kilometer. This expenditure is significantly higher compared to similar projects, raising concerns about overbilling and fund diversion.

Legal Proceedings and Court Observations

The Supreme Court has been actively involved in addressing the grievances of homebuyers affected by the Jaypee Group's actions. In previous hearings, the court restrained all 13 directors of Jaiprakash Associates and their immediate family members from transferring any personal assets or property without its permission. The court emphasized that the wealth of Jaiprakash Associates had increased at the cost of homebuyers.

Resolution Efforts and Homebuyers' Relief

In a significant development, the National Company Law Tribunal (NCLT) approved the Suraksha Group's bid to acquire Jaypee Infratech, aiming to provide relief to over 20,000 homebuyers who have been awaiting possession of their homes for over a decade. The Suraksha Group's resolution plan includes completing the stalled projects and delivering the homes to the buyers.

Conclusion

The ED's recent actions underscore the ongoing efforts to address financial irregularities in the real estate sector and protect the interests of homebuyers. The seizure of cash and property documents is a step towards holding the responsible entities accountable and ensuring that justice is served for the thousands of affected homebuyers.

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