Jaypee Group in Noida was raided by the ED in connection with a Rs 12,000 crore fraud case. The raids are part of a money laundering probe under the Prevention of Money Laundering Act (PMLA) which carried out searches at 15 locations in Delhi and Mumbai. This includes offices and properties associated with major real estate firms.
The Enforcement Directorate (ED) conducted raids on the Jaypee Group in Noida as part of an investigation into a Rs 12,000 crore fraud case. The ED carried out comprehensive searches related to an alleged fraud of approximately Rs 12,000 crore involving prominent real estate companies, including Jaypee Infratech, Jaypee Associates Ltd, and others.
Since this morning, searches are underway at 15 sites in Delhi and Mumbai as part of a money laundering investigation under the Prevention of Money Laundering Act. These raids involve offices and properties associated with Jaypee Associates and its subsidiaries, along with other notable real estate companies including Gaursons, Gulshan, Mahagun, and Suraksha Realty.
Thousands of people affected
Officials report that the fraudulent activities primarily consisted of misappropriating and redirecting funds meant for home buyers and investors. The Enforcement Directorate stated that they are investigating a case involving substantial misappropriation of monetary transactions and the misuse of public funds. This situation has impacted thousands of unsuspecting individuals who invested in properties with the aspiration of obtaining their dream homes.
Impact on real estate sector
The ED said that as the investigation progresses, more information is expected to come out about the money trail and alleged collection of money. This can have an impact on the companies concerned and the real estate sector at large.