Enforcement Directorate Cracks Down on Jaypee Infratech in Major Fraud Case

The Enforcement Directorate has conducted a significant crackdown on Jaypee Infratech Ltd (JIL) and Jayprakash Associates Ltd (JAL), seizing cash amounting to Rs 1.70 crore and documents during a series of raids. This operation is part of a broader investigation into alleged money laundering linked to a homebuyers' fraud case.

The raids were executed across 15 premises in major locations including Delhi, Noida, Ghaziabad, and Mumbai under the guidelines of the Prevention of Money Laundering Act (PMLA). The scope of the search included offices and premises of JAL, its affiliates, and business associates such as Gaursons India Pvt Ltd, Gulshan Homz Pvt Ltd, and Mahagun Real Estate Pvt Ltd, as stated by the central probe agency.

The investigation is rooted in FIRs filed by the Economic Offences Wing of Delhi Police and the Uttar Pradesh Police, accusing JAL, JIL, and their directors of large-scale fraud. These allegations include falsely luring homebuyers and investors under the guise of providing residential apartments and plots. The proceedings revealed that Jaiprakash Associates Ltd is embroiled in insolvency, complicating its operations across cement, construction, real estate, and hospitality sectors. Suraksha Realty has acquired Jaypee Infratech Ltd with the goal of completing stalled housing projects in the NCR.

(With inputs from agencies.)