Court sends former Jaypee Infra chief to ED custody in home buyer fraud case

“We have come across several transactions in which Gaur’s involvement has been found. We are bound to investigate the matter. We have to face all the documents. He is one of the key people in all the companies. To complete our investigation, we seek 7 days’ detention,” ED counsel said before Additional Sessions Judge Dhirendra Rana.

The CEO has initiated an investigation against the Jaypee Group based on multiple FIRs registered by the Economic Offenses Wings (EOW) of the Delhi and Uttar Pradesh Police, based on complaints filed by homebuyers in the Jaypee Wishtown and Jaypee Greens projects.

Gore’s attorney opposed the ED’s motion seeking custody, noting that his client had submitted all documents and cooperated with the agency by answering their questions. He also stressed the medical ailments of his client, adding that the data relating to the allegations had been recorded by the ED four years ago.

The court held that “the allegations against the accused are serious in nature. He has been instrumental in the management of JAL, JII and other subsidiaries both in the capacity of CEO and MD.”

“It is also on record that the hard-earned money he earned from innocent buyers was invested in several companies and 9 FIRs were registered against him. The amount sought to be traced as proceeds of crime is huge and for this purpose detailed and sustained interrogation of the accused is required,” the statement added.

On May 23, the agency conducted searches at 15 locations in Delhi, Noida, Ghaziabad and Mumbai, including offices and buildings of Jaiprakash Associates Ltd. and Jaypee Infratech Ltd.

According to the CEO, during the search operations, financial documents and digital devices were seized along with documents relating to immovable properties in the names of the promoters, their family members and group companies, amounting to Rs 1.70 crore.

The FIR in the case alleged dishonest incitement of homebuyers and investors to invest money “on the pretext of allotting residential apartments and plots in projects like Jaypee Wishtown (JIL) and Jaypee Greens (JAL)”.

The agency said in a statement, “The DEA investigation revealed that of the approximately Rs 14,599 crore collected by JAL and JIL from homebuyers (as per the claims admitted by NCLT), significant amounts were diverted for non-construction purposes and were transferred to the relevant group entities and trusts, including Jaypee Sewa Sansthan (JSS), M/s Jaypee Healthcare Ltd. (JHL), and M/s Jaypee Sports International Ltd. (JIL).”