New Delhi, Jan 7 : The Enforcement Directorate on Wednesday said it has attached assets worth a combined Rs 400 crore of a trust linked to former Jaypee Infratech MD Manoj Gaur and a company of Honeyy Katiyal, promoter of leading housing brokerage firm Investors Clinic.
The action under the provisions of the Prevention of Money Laundering Act (PMLA) is linked to the probe against Jaypee group companies– Jaypee Infratech Ltd (JIL) and Jaiprakash Associates Ltd (JAL)– and associated entities in a “large-scale fraud” and misappropriation of funds that were collected from the homebuyers of the Jaypee Wishtown and Jaypee Greens projects in Noida.
The federal probe agency said in a statement that a provisional order has been issued to attach immovable assets belonging to Jaiprakash Sewa Sansthan (JSS) and Page 3 Buildtech Private Limited, having a combined current market value of Rs 400 crore. It was not mentioned by the ED as to what amount belonged to each of the two parties.
Gaur, arrested by the ED in November and currently in jail under judicial custody, is the managing trustee of JSS while Page 3 Buildtech is “controlled and beneficially owned” by Katiyal, founder of Noida-based Investors Clinic.
The ED claimed that the two companies (JSS and Page 3 Buildtech) received a “part” of the diverted homebuyers’ funds.
While Gaur’s legal representative cannot be reached for a comment, a response from Investors Clinic is awaited.
Business conglomerate Adani Enterprises has won a bid to acquire Jaiprakash Associates Ltd through an insolvency process. Lenders of JAL have already approved Adani Group’s resolution plan to acquire the bankrupt firm and the National Company Law Tribunal (NCLT) nod is pending.
JAL is into construction, power, hotels, real estate and sports management businesses, among others.
Mumbai-based Suraksha Group has acquired Jaypee Infratech Ltd through an insolvency process and it is mainly into real estate and also owns Yamuna Expressway that connects Noida and Greater Noida to Agra.
The money laundering case stems from the FIRs of Delhi and Uttar Pradesh Police which took cognisance of the complaint filed by the homebuyers of Jaypee Wishtown and Jaypee Greens projects.
According to the complaint, JIL, JAL and their promoters including Gaur collected funds from thousands of investors for construction of homes but “diverted” them leaving the homebuyers defrauded and their projects incomplete.
The ED said the two Jaypee group companies collected Rs 14,599 crore from more than 25,000 homebuyers (as per claims admitted by the NCLT), but “substantial” amounts were diverted and siphoned off to related group entities including JSS, Jaypee Healthcare Ltd. and Jaypee Sports International Ltd.
“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,” the agency alleged.
