Source: ZeeBusiness
The Central Bureau of Investigation (CBI), the country’s top crime-fighting agency, on Friday launched searches at private sector property developer Jaypee Group’s marketing office in Sector 128, Noida, Uttar Pradesh. Investigators conducted the raids in connection with 24 projects located in Noida, Greater Noida, and Yamuna Expressway areas. Some of these projects were started by the Jaypee group. The development comes after the Supreme Court’s April 29 order to carry out a probe into suspected financial irregularities involving an alleged nexus between lenders and property developers.
The Jaypee Group's flagship firm, Jaiprakash Associates Ltd (JAL) is undergoing corporate insolvency proceedings.
The latest CBI searches are part of its ongoing investigations as per a Supreme Court order dated April 29. Investigators are probing alleged financial irregularities in loans sanctioned under a misused subvention scheme that may have impacted thousands of homebuyers.
Under the scheme, banks disbursed funds to builders for home loans. In several cases, property builders stopped paying interest while failing to deliver the projects to homebuyers. There were also instances where homebuyers had to bear the EMI burden without the delivery of flats.
Earlier, the CBI sought details about nine builder projects from the Noida Authority, 11 projects from the Greater Noida Authority, and four projects from the Yamuna Development Authority. It demanded details related to outstanding amounts, layout plans, agreement letters, registry statuses, and the builders.
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The CBI launched the raids after receiving the required details from the authorities.
CRPF and police personnel secured the premises during the searches.
On April 29, the top court directed the Yamuna Expressway Industrial Development Authority (YEIDA) to appoint developers to complete Jaiprakash Associates’ pending residential projects.
In March, the National Company Law Tribunal, the country's insolvency court, held that the resolution plans to acquire JAL through insolvency proceedings should be invited for the entire company as one unit.
The Enforcement Directorate (ED) launched separate searches in a money laundering-related case linked to entities including Jaypee Infratech and Jaypee Associates. The matter relates to allegations of fraud amounting to Rs 12,000 crore against homebuyers and investors, and the siphoning and diversion of funds.
The ED, the country's primary financial crime fighting agency, was conducting raids at 15 premises located in the Delhi NCR and in Mumbai.
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