Court grants 5 days' custody of Manoj Gaur to ED in alleged Money laundering case

New Delhi [India], November 13 : The Patiala house court on Thursday granted 5 days of custody of Manoj Gaur to the ED in an alleged money laundering case. He is a former CMD of JayPee Infratech Ltd. He has been arrested in the alleged money laundering case
Additional Sessions Judge (ASJ) Dhirendra Rana granted 5 days custody after hearing the submissions on the remand application.
ED produced Manoj Gaur before the Patiala House Court and sought 7 days' custody of Manoj Gaur to interrogate him.
ED's Counsel Atul Tripathi submitted that it is an alleged money laundering case related to the money of Home Buyers. Accused persons collected Rs 13000 crores but did not use the same to give accommodation to home buyers.
He also submitted that the ground of arrest has been supplied to the accused.
Counsels for the accused opposed the remand sought by the ED. It was submitted that the ECIR was lodged in 2018. The arrest has been made after almost seven years.
Senior advocate Anupam Lal Das opposed the remand application and submitted that there is no offence committed by the accused. There was a restraint on construction by the NGT; therefore, construction could not take place. JayPee Associates Ltd. has gone into insolvency.
It is alleged that he is not cooperating, and should accept the allegations, the Counsel questioned. He has been summoned several times, the Senior advocate questioned.
Advocate Dr. Farrukh Khan also appeared for accused Manoj Gaur. He said that the ECIR is from 2018. "What stopped ED from 2018 to 2025? Now, Gaur has been illegally arrested," he said.
The ground of arrest has to be supplied to the accused. There is nothing mentioned in the ground. ED has not complied with the procedure in the spirit of law.
He is asthmatic, diabetic, and 61 years old, facing the danger of high AQI, Dr. Farrukh submitted.
The counsel 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 in 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 on the part of Manoj Gaur. "He is a sick man. When a company is dissolved, why should the man be sent in custody?" counsel questioned.
Senior advocate Siddharth Luthra also appeared for Manoj Gaur. He submitted that what has happened after 7 years, the explanation is not coming from ED.
"First FIR was lodged in 2017, and thereafter. My statement has been recorded, We are in the year 2025 end," Senior advocate Luthra argued.
He further argued that the grounds of arrest is meaningful if they are able to mention the purpose of arrest. It is not a case of custody remand, kindly consider the release of the accused, he added.
The Court asked the ED, "He has joined the investigation. What do you have to ask now?
ED's counsel Tripathi submitted that there are many documents. He has submitted 10 thousand documents. Not providing more documents.
We are investigating the matter before the companies approached the NCLT. The offences are prior to that, Tripathi said. Being the key person in all companies involved, the counsel.
We have the right to complete the investigation. We are seeking 7 days' custody only. We have to go forward, Counsel for ED said.
It is not only JAL and JIL. We want to know where the funds were diverted, to know the role of other persons involved, the role of other entities, the ED said.
Dr. Farrukh opposed the submissions and submitted that it is not a murder case where Identification of the weapon is required.
ED said that it has arrested Manoj 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 in an ECIR recorded by the ED under PMLA in connection with the Jaypee Group, the agency said in a release.
It is also said that the ED initiated the 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.
It has been alleged that the funds collected from thousands of homebuyers for construction and completion of residential projects were diverted for purposes other than construction, leaving the homebuyers defrauded and their projects incomplete, the agency added.
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.
It has also been revealed during the investigation that Manoj Gaur is the Managing Trustee of Jaypee Sewa Sansthan (JSS), which received part of the diverted funds, the Agency claimed.
Earlier, on 23 May 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 the central role of Manoj Gaur in the planning and execution of the fund diversion through a complex web of transactions within the Jaypee Group and its associated entities.