On ED complaint of Jaypee fund diversion, FIR against Suraksha, partner company

Noida: Lurching from one crisis to another, Wish Town, and with it the fate of 17,000 homebuyers, are caught in turbulence yet again.Acting on a complaint from Enforcement Directorate (ED), Delhi Police's economic offences wing has filed an FIR against Suraksha Realty and Lakshdeep Investments and Finance – Suraksha's partner in the insolvency resolution of Jaypee Infratech Ltd (JIL) – for alleged diversion of funds meant to complete flats across JIL projects. The biggest of them is Wish Town in Sector 120, where Suraksha is mandated to complete 17,000 flats, some of which were promised to buyers more than a decade ago. Suraksha took over JIL in 2024 after a long-drawn corporate insolvency resolution process. The FIR was filed on Jan 1 under sections 406 (criminal breach of trust), 420 (cheating) and 120B (criminal conspiracy) of IPC. ED is investigating JIL in a Prevention of Money Laundering Act (PMLA) case and had, in Nov 2025, arrested erstwhile JIL promoter Manoj Gaur. According to the 1 FIR, JIL's chief finance officer Rahul Gohil told ED in his statement on May 23, 2025 that Rs 125 crore was infused as equity in JIL on June 11, 2024 after Suraksha formally took JIL's reins but other obligations, like a Rs 3,000 crore credit facility, were not fulfilled within the mandatory 90-day period of the takeover.Instead, funds were routed to entities linked to Lakshdeep and Suraksha, according to the ED complaint. The FIR details multiple transactions that are flagged as fund diversions. Among these are Rs 75 crore to ITI Gold Loans, a company in which Lakshdeep holds 46% stake, categorised as a ‘loan'; Rs 25 crore to ITI Housing Finance, where Lakshdeep holds 59%; and Rs 135 crore to ITI Finance, in which Lakshdeep has a 37% stake, for ‘vehicle loan financing'.Funds used in these transactions, according to the ED investigation, originated from FDs maintained by JIL and created using homebuyers' money as well as revenue from toll collection on Yamuna Expressway, of which Jaypee was the concessionaire. ED also found that JIL invested Rs 107 crore in ITI Mutual Fund, which is part of the Lakshdeep-linked ITI group.ITI group's main holding company is Investment Trust of India Ltd, which has Chintan Vijay Valia — son-in-law of Suraksha Group promoter Sudhir Valia — as a director.This investment, according to ED, was funded from proceeds of the sale of Jaypee Healthcare, a JIL subsidiary, to Max Healthcare in 2024. From the sale proceeds, besides the mutual fund investment, Rs 397 crore was placed in FDs with State Bank of India and Rs 105 crore was used to purchase a plot from ICICI Bank through a surrender deed dated March 19, 2025.Taken together, these transactions are prima facie indications of diversion of funds meant to be used for completing stalled apartments, according to the central agency. It also pointed out that homebuyers had approached National Company Law Tribunal (NCLT) seeking constitution of a monitoring committee to oversee implementation of the resolution plan and that construction had not begun at the pace promised a year after the takeover.Suraksha did not respond to TOI's query about the charges in the FIR.Incidentally, Suraksha earlier this week said it had completed construction of 5,989 flats across 63 residential towers since its takeover of JIL. Wish Town comprises 10 residential projects with a total of 159 towers. Launched in 2010-11, the projects were originally scheduled for delivery in 2014-15, but years of litigation, debt and insolvency stalled construction, leaving about 20,000 homebuyers across JIL projects in an unending cycle of delay.Insolvency proceedings against JIL were initiated by IDBI Bank in Aug 2017. Suraksha edged out state-run NBCC in voting by the committee of creditors and was picked as resolution applicant. NCLT approved its resolution plan on March 7, 2023, and NCLAT upheld it in May 2024. The plan aimed to revive JIL by settling debts, completing stalled housing projects, and ensuring equitable treatment of all stakeholders. For homebuyers, whose admitted claims amounted to Rs 12,806 crore, the plan promised completion of all pending flats within 4 years.Financial creditors admitted claims of Rs 9,783 crore, to be addressed through land parcels exceeding 2,500 acres and nearly Rs 1,300 crore in non-convertible debentures. Operational creditors, including Yamuna Expressway Industrial Development Authority, saw their admitted claims significantly pared down.Critically, the plan also required the Suraksha Group to generate fresh funds for construction. This included infusion of Rs 125 crore as equity, Rs 125 crore as debt, and arrangement of a fresh credit facility of Rs 3,000 crore within 90 days of approval.Ashish Mohan Gupta, who is president of JIL Real Estate Allottees Welfare Society, said, "The stand taken by us on diversion of funds by Suraksha is vindicated by ED's findings and the FIR. We urge the authorities to act expeditiously to ensure recovery of homebuyers' money and its rightful utilisation for the construction of their homes."ED'S PMLA investigation traces its origins to multiple complaints filed by homebuyers and investors alleging fraud in Jaypee housing projects such as Wish Town and Jaypee Greens. These complaints had led to FIRs being registered by Delhi Police's economic offences wing in 2017 and 2018, as well as by the UP Police, against JIL, its parent company Jaiprakash Associates Ltd and their promoters.