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Jaypee Infratech homebuyers fraud

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Jaypee Infratech homebuyers fraud (also known as the Jaypee Infratech fraud or Jaypee Wishtown fraud) refers to allegations of large-scale fund diversion from homebuyer payments by Jaypee Infratech and its parent Jaiprakash Associates Limited, part of the broader Jaypee Group. Over ₹14,599 crore (US$1.5 billion) collected from 25,000+ homebuyers for Jaypee projects in Noida and Greater Noida was allegedly diverted to other group entities instead of construction, causing major delays, incomplete flats, and buyer losses.[1]

As of April 2026, the Enforcement Directorate is probing the case under Prevention of Money Laundering Act, 2002, with key actions including the arrest of former chairman and managing director Manoj Gaur in November 2025 and attachment of assets worth ₹400 crore (US$42 million).[2][3]

Background

In the late 2000s and 2010s, Jaypee Infratech built large housing projects along the Noida–Greater Noida Expressway. Particularly, the Jaypee Wish Town project in Sector 128, along with other projects in Sectors 129, 131, 133, and 134, was supposed to deliver homes to buyers around 2011–2012. However, there were major delays, and homebuyers complained that their payments were not used to complete the projects. Later, the company entered insolvency in 2017 under the Insolvency and Bankruptcy Code, 2016 and the homebuyers were subsequently treated as financial creditors. Its assets were taken over by Suraksha Realty through this process.[4] It was found that funds were allegedly diverted to related entities, including group companies and trusts. Complaints were registered to the Economic Offences Wing led to FIRs citing cheating, conspiracy, and breach of trust.[5]

Investigation

In May 2025, the ED teams raided multiple locations in Delhi and National Capital Region[6] and on 13 November 2025, it finally arrested the former chairman and managing director of the company Manoj Gaur, for his alleged role in diverting funds through intra-group transactions[7][8]; he was later remanded to judicial custody, with bail denied.[9]

In January 2026, the ED temporarily seized assets worth about ₹400 crore that were connected to related entities.[10][3]

References

Further reading