Money laundering: Delhi HC issues notice to ED on Manoj Gaur's bail

The Delhi High Court has issued a notice to the ED on the bail pleas of former Jaypee CMD Manoj Gaur in a money laundering case. He seeks regular bail and interim bail on his mother's health grounds after a lower court rejected his plea.

The Delhi High Court on Friday issued notice to the Enforcement Directorate on regular and interim bail pleas of Manoj Gaur, former CMD (Chairman & Managing Director) of Jaypee Infratech Ltd. He is seeking regular as well as interim bail in a money laundering case.

High Court Proceedings

His regular bail plea was rejected by the Patiala House Court on February 16. He surrendered before the jail authorities a day earlier after the expiry of his interim bail. He was granted interim bail on the grounds of his mother's health condition.

Justice Anup Jairam Bhambhani issued notice to ED and sought a response. The high court listed a regular bail hearing on April 27.

Gaur has also sought interim bail on the health condition of his mother, who is terminally ill. The bench has listed the Interim bail for hearing on February 26. The court has called a medical status report of Gaur's mother.

Background of the Money Laundering Case

Former CMD of Jaypee Infratech Ltd, Manoj Gaur, has moved the Delhi High Court for regular bail plea in a money laundering case.

Gaur has been arrested and charge sheeted by the Enforcement Directorate (ED) in an alleged money laundering case of more than Rs 1,3000 crore. Gaur was arrested on November 13, 2025. This case pertains to the alleged money laundering of the money of 25,000 home buyers.

Gaur is on interim bail granted on the grounds of his mother's health. He was arrested on November 13. Senior advocate Siddharth Luthra and Advocate Dr. Farrukh Khan appeared for Manoj Gaur. Advocate Rahul Tyagi appeared for the ED and accepted notice.

Additional Sessions Judge (ASJ) Dhirendra Rana had rejected the bail plea of Manoj Gaur. ED has opposed the bail plea and argued that it is a case of alleged money laundering of Rs 13,000 crores and there are 25,000 home buyer victims. Patiala House Court on January 24 granted 14 days' interim bail to Manoj Gaur on the health condition of old age mother. The order was challenged before the High Court.

Gaur's Defence

Counsel for accsued had stated on the bail plea that Gaur's detention, viewed in the backdrop of an eight-year-old ED case, documentary allegations, absence of personal gain, statutory divestment of control over companies, and serious medical infirmities, is grossly disproportionate and violative of Articles 14 and 21 of the Constitution of India.

ED's Investigation and Allegations

ED had submitted that it is a 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.

ED had said that it 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.

It was also said that the ED initiated an investigation against the Jaypee group based on 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 is alleged that the funds collected from thousands of homebuyers for the 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 is 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. 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. (ANI)

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