In the world of real estate development often involves large sums of money, big promises and sometimes, unfortunate delays. Recently, a major investigation has brought one such case into sharp focus, highlighting the serious risks faced by individuals who invest their life savings into buying a home. The Enforcement Directorate (ED) has taken significant action against the Jaypee Group under the Prevention of Money Laundering Act (PMLA), revolving around the alleged misuse of Homebuyer Funds.
₹12,000 crore allegations
The core of the matter involves an alleged diversion and misuse of approximately ₹12,000 crore that was collected from people who booked flats and houses, primarily through Jaypee Infratech and its associated company, Jaiprakash Associates Ltd (JAL).
The investigation gained momentum after numerous protests and complaints were filed by homebuyers as far back as 2017. These complaints accused the group of cheating and failing to deliver housing projects, such as those in Jaypee Wishtown and Jaypee Greens, where sales had begun years ago (as early as 2010-11). The issue wasn’t just delay, the ED’s findings suggest that the money collected was not solely used to complete the projects for which it was intended.
Siphoning and scrutiny
The ED’s probe found compelling evidence suggesting that the Homebuyer Funds, along with money borrowed from banks, were allegedly diverted away from the construction sites. Instead of ensuring project completion, these funds were reportedly moved to other companies within the larger group structure. This siphoning off of funds meant projects stalled, leaving thousands of buyers stranded without the homes they were promised.
To gather necessary evidence, the ED conducted extensive searches at about 15 locations across Delhi, Noida, Ghaziabad, and Mumbai, linked to the Jaypee Group and related entities. During these operations, authorities seized around ₹1.7 crore in cash, along with crucial financial records, digital documents and property papers connected to the promoters and their families. They also searched the offices of other real estate firms, like Gaursons India and Mahagun Real Estate, that reportedly had financial dealings with the Jaypee Group.
Also Read – Harshad Mehta’s Juhu flat auctioned again
Disclaimer: This article is based on information reported in the media regarding ongoing legal proceedings and should not be taken as a final judgment of guilt.
Source – India Today
Write Your Comment