Jaypee Housing Projects: ED says Homebuyers paid Rs 32,825 cr but Rs 13,833 cr were diverted
New Delhi, Aug 14: What was suspected for long, has been stated by the Enforcement Department (ED) regarding the housing projects of Jaypee in Noida, which have remained incomplete much beyond the deadlines, leaving over 20,000 homebuyers distraught.
According to a submission by ED in Delhi High Court, Jaiprakash Associates Limited (JAL) and its subsidiary company Jaypee Infra Limited (JIL), collected Rs 32,825 crore for the construction and completion of residential projects in Noida and Greater Noida, but allegedly diverted Rs 13,833 crore for other purposes.
It meant 42 paise of every rupee collected did not go towards construction.
The 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, said the ED in its submission to the court.
The amount of Rs 32,825 crore was collected from 25,000 homebuyers in Noida and Greater Noida.
Major properties that remain incomplete are in the Jaypee Greens Wishtown complex in Noida, centred in Sector 128 and spread across Sectors 129, 131, 133, and 134.
These flats were booked by homebuyers in 2011 but most of the flats have remained incomplete, leaving over 20,000 families distraught. Many homebuyers have died while waiting to see and occupy the flats they bought.
The ED made these submissions during bail hearing of Manoj Gaur, the former CMD of Jaypee Infratech Ltd. (JIL), who 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 said, “Are you saying Rs 13,000 crore? That is too big an amount… prima facie, no case for bail is made out.”
He said a custody period of merely nine months could not, prima facie, weigh in favour of Gaur’s release.
Next day of hearing is August 18.
The ED said 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,” the ED submission said.
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. (BVI)
