Jaypee Group Entities Raided in Multi-city Money Laundering Probe, Rs1.7 Crore in Cash Seized
Moneylife Digital Team 26 May 2025
The Delhi zonal office of the directorate of enforcement (ED) has conducted search operations at 15 locations across Delhi, Noida, Ghaziabad and Mumbai in connection with an ongoing money laundering investigation into real estate majors Jaypee Infratech Ltd (JIL), Jayprakash Associates Ltd (JAL), and related entities.
 
The searches, carried out on 23 May 2025, were part of a probe under the Prevention of Money Laundering Act (PMLA), 2002. ED said it searched offices and premises associated with JAL, its promoters, directors, and affiliated companies. Additionally, the probe covered key business associates, including Gaursons India Pvt Ltd, Gulshan Homz Pvt Ltd and Mahagun Real Estate Pvt Ltd.
 
The central agency launched its investigation following multiple first information reports (FIRs) filed by the economic offences wings (EOW) of Delhi and Uttar Pradesh police. These FIRs allege that JAL, JIL and their promoters were involved in large-scale fraud, criminal conspiracy and dishonest inducement of home-buyers and investors under the guise of allotting residential flats and plots in flagship projects such as Jaypee Wishtown (JIL) and Jaypee Greens (JAL).
 
“The searches led to the recovery of incriminating financial documents, digital devices, and papers related to immovable properties held in the names of the promoters, their family members, and group companies,” ED says in a statement. Officials also seized Rs1.70 crore in cash during the operations.
 
The probe focuses on suspected diversion and misappropriation of funds collected from thousands of homebuyers and investors over the past decade. Many of these residential projects faced long delays, leading to financial and legal action from buyers and regulators alike.
 
ED is now examining the seized materials to trace the flow of funds and establish whether laundered money was invested in benami properties or routed through shell companies.
 
This is not the first time the Jaypee group has come under regulatory scrutiny. The group’s delayed projects and insolvency proceedings have affected thousands of home-buyers, with JIL having been under insolvency resolution since 2017.
 
Investigations are ongoing and further action by the agency is expected in the coming weeks.
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