Money collected from Jaypee homebuyers allegedly went to a Formula One track, a hospital company, a charitable trust and an expressway, the Enforcement Directorate (ED) told the Delhi High Court on Tuesday.
While Rs 32,825 crore was collected from 25,000 homebuyers in Noida and Greater Noida, Rs 13,833 crore was allegedly diverted to these entities, the agency said — meaning 42 paise of every rupee collected did not go towards construction.
The central probe agency, represented by standing counsel Rahul Tyagi, made these submissions during the bail hearing of Manoj Gaur, the former CMD of Jaypee Infratech Ltd. (JIL).
Gaur was arrested by the ED last November in connection with a 2018 money laundering case involving the alleged diversion of Rs 13,800 crore of homebuyers’ money.
After hearing the ED’s submissions, Justice Purushaindra Kumar Kaurav observed that “no prima facie” case for bail was made out for Gaur. “Mr Tyagi, are you saying Rs 13,000 crore? That is too big an amount… prima facie, no case for bail is made out,” the court said, adding that a custody period of merely nine months could not, prima facie, weigh in favour of Gaur’s release.
The ED claimed the diverted money travelled along six channels, each of them to an entity that Gaur himself controlled.
“Gaur drew Rs 48.91 crore in salary from Jaiprakash Associates Ltd. (JAL) between 2009-10 and 2021-22, years in which the company was making losses, at a peak of 93 times the median pay of its own employees,” Tyagi submitted before the HC.
The arguments on bail will now be heard on August 18. Gaur is expected to reply to the ED’s submissions.
The case against Gaur and Jaypee Infratech began after homebuyers of Jaypee Wishtown and Jaypee Greens projects filed complaints with the Economic Offences Wings (EOW) in Delhi and UP.
According to the ED’s prosecution complaint filed in January against Gaur, the two companies, JAL and JIL, collected over Rs 33,000 crore for the construction and completion of residential projects in Noida and Greater Noida, but allegedly diverted close to Rs 13,000 crore for other purposes.
According to the ED, homebuyers’ money was allegedly diverted to Jaypee Group subsidiaries and other group entities: Jaypee Healthcare Ltd, Jaiprakash Sewa Sansthan and Jaypee Sports International Ltd, used for construction of the Yamuna Expressway and routed to entities controlled by Gaur.
Major properties that remain incomplete are in the Jaypee Greens Wishtown complex in Noida. Most properties in the project, which is centred in Sector 128 and is spread across Sectors 129, 131, 133, and 134, were booked in 2011.
Vandana Sabharwal, who booked a flat in the Kasablanca project at Jaypee Wishtown in Noida’s Sector 128, has filed a writ petition in the Supreme Court seeking a court-monitored investigation in the case.
“After over seven years, only Rs 400 crore has been provisionally attached, which amounts to approximately 2.9 paise in every rupee diverted,” the petition states.
The Supreme Court issued notice and sought the ED’s response to the petition. The matter will now be heard on September 3.
