Two days after conducting multiple searches in connection with a ₹12,000-crore money laundering investigation, the Enforcement Directorate (ED) announced on May 26, 2025, that it had seized ₹1.70 crore in cash and recovered a range of incriminating financial documents. The documents included records relating to immovable properties held in the names of Jaypee Infratech, Jaiprakash Associates, their promoters, family members, and associated companies.

The raids, carried out on May 23, took place across various locations in Delhi-NCR (Delhi, Noida, and Ghaziabad) and Mumbai. The ED stated that these search operations were part of an ongoing probe under the Prevention of Money Laundering Act (PMLA). According to an ED spokesperson, the searches were conducted as part of the investigation into Jaypee Infratech Ltd (JIL), Jaiprakash Associates Ltd (JAL), and associated entities. The aim was to uncover money laundering networks and verify allegations of financial misconduct.

The operation covered the offices and residences of JAL’s promoters and directors, as well as the premises of key business partners. Notably, the ED searched locations connected to companies like Gaursons India Pvt Ltd, Gulshan Homz Pvt Ltd, and Mahagun Real Estate Pvt Ltd — all believed to have significant business relations with JAL.

The foundation of the ED’s probe lies in multiple First Information Reports (FIRs) registered by the Economic Offences Wing (EOW) of the Delhi and Uttar Pradesh Police. These FIRs accuse JAL, JIL, and their senior functionaries of a range of serious criminal offenses under various sections of the Indian Penal Code (IPC). The allegations include massive financial fraud, criminal conspiracy, and misleading and inducing homebuyers and investors into parting with their funds under false promises.

Specifically, the FIRs highlight irregularities in the projects "Jaypee Wishtown" and "Jaypee Greens"—flagship real estate developments by the group. Buyers were reportedly lured into investing in residential apartments and plots through promises of timely allotment and possession. However, the promoters are accused of defaulting on delivery and misusing the collected funds.

The searches were part of an effort to trace the flow of illicit money, identify benami properties, and confirm the use of diverted funds in acquiring assets in the names of promoters and associated entities. The seizure of cash and documents is expected to aid the agency in building a stronger case against those involved.

The ED's operations mark a significant development in a high-profile case involving one of India’s prominent real estate and infrastructure groups. The agency is likely to use the newly obtained evidence to deepen the investigation and pursue prosecution under the stringent provisions of the PMLA. Further actions, including arrests and asset attachments, may follow depending on the analysis of the recovered documents and the financial trail.

The investigation underscores the government's continued efforts to crack down on economic offenses and hold corporate defaulters accountable for financial misconduct, especially in cases where public and investor trust has been allegedly violated.