Delhi Court Rejects Bail for Former Jaypee Infratech MD in Massive Money Laundering Case
In a significant ruling, a Delhi court has denied bail to Manoj Gaur, the former managing director of Jaypee Infratech Ltd (JIL), in a high-profile money laundering case. The case stems from an alleged fraud amounting to Rs 14,599 crore, which has left thousands of homebuyers in distress, with their dreams of owning a home shattered.
Serious Allegations and Court Observations
Additional Sessions Judge Dhirendra Rana, in an order dated February 16, highlighted the gravity of the accusations. The court noted that while innocent homebuyers, who invested their hard-earned savings, are "running from pillar to post" seeking justice, the accused, Manoj Gaur, is alleged to have been "enjoying the proceeds of crime through layering of business transactions." The judge emphasized that the allegations involve "thousands of crores and thousands of innocent home buyers," making it a matter of severe public concern.
Failure to Meet Bail Conditions Under PMLA
The court dismissed Gaur's bail plea after finding that he failed to satisfy the twin conditions under Section 45 of the Prevention of Money Laundering Act (PMLA). These conditions require reasonable grounds for granting bail and assurance that the accused is unlikely to commit any offence while on bail. Judge Rana held that Gaur did not meet these criteria, citing the serious nature of the charges and his potential to interfere with the investigation.
Background of the Case and Arrest
Manoj Gaur was arrested by the Enforcement Directorate (ED) on November 13 last year. The agency alleges that funds collected from homebuyers for the construction and completion of residential projects, specifically Jaypee Wishtown and Jaypee Greens in Noida and Greater Noida, were diverted for purposes other than construction. This diversion has resulted in incomplete projects, leaving buyers in limbo.
According to the ED, Jaiprakash Associates Ltd (JAL) and JIL collected over Rs 33,000 crore for these projects. The court's examination of JIL's account books revealed that the company incurred an expenditure of only Rs 11,829 crore. Out of 159 proposed towers, construction in 97 was stalled, with no work undertaken, meaning nearly "60% of the work remained incomplete."
Alleged Fund Transfers and Financial Irregularities
The court also pointed to suspicious financial activities by Gaur. It observed an attempt to transfer 17.69 acres of land through an unregistered document to M/s Skyline Propcone Pvt. Ltd. This move was made after the initiation of corporate insolvency resolution process proceedings, reportedly in an effort to mask transactions. The court noted, "There is no explanation available on record as to why accused Manoj Gaur tried to transfer the land," suggesting it was part of a scheme to conceal assets.
Furthermore, the judge highlighted Gaur's "exorbitant salary" of Rs 48 crore drawn between 2009 and 2022, despite his companies running in losses. This raised questions about the misuse of company funds at the expense of homebuyers.
Tainted Past and Risk of Evidence Tampering
The court underscored Gaur's "tainted past," noting that he has been chargesheeted in four cases and named in 11 FIRs on similar allegations. Given this history, the judge expressed concern that if released on bail, Gaur might "tamper with the evidence, threaten witnesses, and commit further offences of a similar nature." This risk was a key factor in the decision to deny bail, ensuring the integrity of the ongoing investigation.
The ruling reinforces the judiciary's commitment to holding individuals accountable in financial fraud cases, particularly those affecting vulnerable consumers like homebuyers. It sends a strong message against money laundering and corporate malfeasance in India's real estate sector.
