ED arrests Jaypee Infratech MD in money laundering case
What's the story
Manoj Gaur, the Managing Director of Jaypee Infratech Limited, has been arrested by the Enforcement Directorate (ED) in a money laundering case. The investigation is related to allegations of cheating and misappropriation of funds belonging to homebuyers. The ED took him into custody under the Prevention of Money Laundering Act (PMLA).
Company crisis
Jaypee Infratech went insolvent in August 2017
Jaypee Infratech went insolvent in August 2017 after the National Company Law Tribunal (NCLT) accepted an application from an IDBI Bank-led consortium. The company had promised to deliver 32,691 units to buyers under different housing projects in Noida. However, only 4,889 units were delivered before the insolvency proceedings began. By August 2017, a staggering 27,802 units were still incomplete.
Information
Over 20,000 flats still remain to be delivered
During the bankruptcy proceedings, 7,278 units were completed. However, as of March 31, 2019, there were still 20,524 units yet to be delivered. The latest data shows that 20,097 flats are still pending delivery. This includes a whopping 17,756 units in Jaypee Wishtown alone.