Jaypee Ex-MD Manoj Gaur Surrenders in ₹14,599-Crore Homebuyer Fraud Case

Former Jaypee Infratech Ltd (JIL) Managing Director Manoj Gaur has surrendered before authorities at Tihar Jail after a Delhi court rejected his regular bail plea in a high-profile money laundering case linked to alleged fraud against thousands of homebuyers. Gaur, who had earlier been granted interim bail, surrendered upon its expiry. Jaiprakash Power Ventures Ltd , where he serves as non-executive chairman, disclosed the development in a regulatory filing, confirming compliance with judicial directions.

On February 17 , the court denied bail, noting that the allegations involve cheating and criminal breach of trust affecting a large number of middle-class buyers who invested life savings in pursuit of homes. The court remarked that while homebuyers struggled for possession and refunds, the accused allegedly benefited from diverted funds. The order reflects the judiciary’s increasingly strict stance in large-scale financial fraud cases involving public investment and housing.

Gaur was arrested by the Enforcement Directorate (ED) on November 13, 2025 , under the Prevention of Money Laundering Act (PMLA) . The probe centres on an alleged ₹14,599-crore fraud in which funds collected for housing construction were diverted. Investigators say Jaiprakash Associates Limited (JAL) and JIL mobilised more than ₹33,000 crore from buyers for flagship projects such as Jaypee Wishtown and Jaypee Greens in Noida and Greater Noida , but substantial amounts were allegedly routed to other group entities, debt servicing, and unrelated expenses, leaving projects stalled.

The case originates from FIRs registered by Delhi and Uttar Pradesh Police following complaints from thousands of buyers who claimed they paid for apartments that were never delivered. The allegations triggered investigations by multiple agencies, including the ED and forensic auditors appointed during insolvency proceedings.

The controversy dates back nearly a decade. JIL entered insolvency proceedings in 2017 after defaulting on loans exceeding ₹9,000 crore, with unfinished homes affecting an estimated 20,000+ buyers . In a landmark intervention, the Supreme Court of India treated homebuyers as financial creditors, giving them representation in insolvency resolution. In 2023, the court approved a resolution plan by Suraksha Group , aimed at completing delayed projects and ensuring delivery of homes, though implementation has faced logistical and financial challenges.

Legal experts note that the ED’s prosecution under PMLA focuses on the alleged laundering of diverted funds, separate from insolvency proceedings aimed at project completion. If proven, the case could set important precedents on promoter accountability, diversion of project funds, and protection of homebuyer investments.

For thousands of affected families still awaiting possession, the proceedings represent both accountability and a reminder of the prolonged battle for housing justice. The outcome is expected to influence regulatory oversight, escrow compliance, and financial discipline across India’s real estate sector.