Former Jaypee Infratech CMD Files Bail Plea In Money Laundering Case

Manoj Gaur, former CMD, Jaypee Infratech Ltd, has filed a regular bail plea in Patiala House Court in a money laundering case.

He was arrested by the Enforcement Directorate (ED) in a case registered in 2018, and has been running in judicial custody since November 18, 2025. He was arrested on November 13, 2025.

The bail application has been moved through advocate Farrukh Khan. The plea highlights that Gaur is 61 years old and has a 30-year medical history.

The bail application is likely to be heard by the Patiala House Court on Monday.

It is stated that Gaur’s detention, viewed in the backdrop of an eight-year-old ED case, documentary allegations, absence of personal gain, statutory divestment of control over companies, and serious medical infirmities, is grossly disproportionate and violative of Articles 14 and 21 of the Constitution of India.

It is further submitted that continued incarceration of Manoj Gaur, despite the absence of any investigative necessity, would amount to punishment prior to conviction and would offend the settled principle that bail is the rule and jail is the exception, particularly in cases involving prolonged investigation and trial.

Gaur has deep roots in society and has substantial family, social, and professional ties within the jurisdiction of this Court, the plea said.

On November 13, the Court granted ED five days of custody of Gaur.

ED had submitted that it is a money-laundering case involving the funds of Home Buyers. Accused persons collected Rs. 13,000 crores but did not use the same to give accommodation to home buyers.

Counsel for the accused opposed the ED’s remand application. It was submitted that the ECIR was lodged in 2018. An arrest has been made after almost seven years.

Advocate Khan submitted that the ECIR is from 2018, and questioned what prevented the ED from 2018 to 2025. Now, Gaur has been illegally arrested.

The counsel had further submitted that the accused appeared before the ED and cooperated in the investigation. He also sent an email to the IO and requested another date to appear.

He was called and was made to sit till 8 at night, the counsel added. JayPee Infratech Ltd. (JIL) went into insolvency in 2017, and the motion was passed.

It was also submitted that there is no evasion by Gaur. He is a sick man. The counsel questioned why the man should be taken into custody when the company has been dissolved.

“The first FIR was lodged in 2017, and my statement was recorded thereafter. We are at the end of 2025, and the counsel for the accused has argued.”

ED had said that it arrested Gaur, former Executive Chairman and Chief Executive Officer of M/s Jaiprakash Associates Ltd. (JAL) and former Chairman and Managing Director of M/s Jaypee Infratech Ltd. (JIL), under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002.

The arrest took place following a detailed investigation and analysis of evidence gathered during the ongoing probe, an ECIR recorded by the ED under the PMLA, in connection with the Jaypee Group, the agency said in a release.

It is also said that the ED initiated an investigation against the Jaypee group on the basis of multiple FIRs registered by the Economic Offences Wings (EOW) of Delhi and Uttar Pradesh Police, based on complaints filed by homebuyers of Jaypee Wishtown and Jaypee Greens projects, alleging criminal conspiracy, cheating, and criminal breach of trust against the company and its promoters.

The agency alleged that funds collected from thousands of homebuyers for the construction and completion of residential projects were diverted for non-construction purposes, leaving the homebuyers defrauded and their projects incomplete.

The ED investigation revealed that out of approximately Rs. 14,599 Crore collected by JAL and JIL from homebuyers (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), M/s Jaypee Healthcare Ltd. (JHL), and M/s Jaypee Sports International Ltd. (JSIL), the ED said.

The investigation also revealed that Manoj Gaur is the Managing Trustee of Jaypee Sewa Sansthan (JSS), which received part of the diverted funds, the agency claimed.

Earlier, on May 23, 2025, the ED had conducted search operations at 15 locations in Delhi, Noida, Ghaziabad, and Mumbai, including the offices and premises of M/s Jaiprakash Associates Ltd. and M/s Jaypee Infratech Ltd.

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, ED said.

The agency has alleged that the investigation has established Gaur’s central role in the planning and execution of the fund diversion through a complex web of transactions within the Jaypee Group and its associated entities. (ANI)