New Delhi/Mumbai: The Enforcement Directorate (ED) has intensified its crackdown on alleged financial irregularities, conducting extensive raids against Jaypee Infratech Ltd (JIL), its parent Jaiprakash Associates Ltd (JAL), and several key business associates. The searches, part of a money laundering investigation linked to a massive alleged homebuyer fraud, resulted in the seizure of ₹1.70 crore in cash and crucial documents related to immovable assets.
The coordinated raids were carried out on May 23rd at 15 locations across Delhi, Noida, Ghaziabad, and Mumbai under the provisions of the Prevention of Money Laundering Act (PMLA). The action targeted offices and premises belonging to JAL, its related entities, promoters, directors, and key business associates, including Gaursons India Pvt Ltd, Gulshan Homz Pvt Ltd, and Mahagun Real Estate Pvt Ltd.
The money laundering investigation stems from First Information Reports (FIRs) previously registered by the Economic Offences Wing (EOW) of both the Delhi Police and the Uttar Pradesh Police. These FIRs accuse JAL, JIL, and their promoters and directors of large-scale fraud and criminal conspiracy.
The core allegation is the dishonest inducement of homebuyers and investors. It is claimed that funds were collected under the pretext of allotting residential apartments and plots in high-profile projects like Jaypee Wishtown (a JIL project) and Jaypee Greens (a JAL venture), which were never delivered as promised. Officials had previously estimated the total value of this alleged fraud to be around ₹12,000 crore.
During the extensive searches, ED officials seized not only the significant cash amount but also a trove of financial documents, digital devices, and papers pertaining to immovable properties allegedly held in the names of promoters, their family members, and various group companies.
In response to the raids, Jaiprakash Associates, a diversified firm with interests in cement, construction, power, real estate, and hospitality, issued a statement through a stock exchange filing on Saturday. The company confirmed that “the Enforcement Directorate (ED) has initiated searches at the offices of the company on 23rd May, 2025.” It further stated that “the Company continues to operate in normal course of business” and is “fully co-operating with the authorities and also providing all the relevant information to the authorities sought for during the search process.”
It is noteworthy that Jaypee Infratech, one of the central entities in this investigation, has already undergone significant changes, having been acquired by the Mumbai-based Suraksha Group through an insolvency resolution process.
The ED’s latest action signals a continued focus on unravelling the complex financial dealings within the Jaypee Group and ensuring accountability in cases impacting thousands of homebuyers. Further investigations are underway based on the documents and digital evidence seized during the raids.
