A homebuilding dispute over late property deliveries has widened into a far-reaching set of challenges for Jaypee Infratech. The case brings together thousands of homebuyers, a lengthy corporate insolvency process, disputed claims over land and monetary compensation, allegations that purchaser funds were redirected away from their intended purpose, investigations by the Enforcement Directorate, legal action against former management figures, and a new round of complaints about how Suraksha Group has implemented the court-approved resolution plan.
The defining question in the case has shifted across different periods. At the outset, the central question revolved around whether Jaypee Infratech would be able to deliver the housing units it had already sold to buyers. Once insolvency proceedings got underway in 2017, attention turned to whether a court-sanctioned restructuring plan could stabilise the business and honour what was owed to creditors. Since Suraksha assumed control in 2024, scrutiny has grown over whether those at the helm are honouring the commitments they took on at the time of the handover.
A two-person panel — drawing on the prior NCLT service of Prasanta Kumar Mohanty and Dr Deepti Mukesh, both appointed as independent reviewers — went through homebuyers' submitted complaints and concluded that the bulk of those cases held up as legitimate. Handed down in February 2026, the panel's concluding document captured developments through the end of June that same year. Among the grievances documented were flat handovers running behind schedule, questions over the standard of construction work carried out, insufficient numbers of workers present on building sites, suspected misdirection or misuse of money set aside for the projects, and a failure to put in place the ₹3,000 crore in working capital that the resolution plan had reportedly envisaged. The panel put forward a formal appeal for tribunal involvement.
Out of JIL's total stock of 250 residential towers, handover of 91 buildings — containing 12,867 individual units — had already taken place by the time the successful resolution applicant assumed control. Of those 159 towers still outstanding, 97 had come to a standstill — accounting for 10,164 units — while the other 62, covering 6,067 units, were approaching completion. Under the terms set for the winning resolution applicant, all outstanding construction across the 62 towers that had reached near-completion was to be wrapped up within an 18-month window, structured around an initial six-month phase followed by a one-year grace allowance.
Across the span running from June 2024 through June 2026, a total of 3,444 possession offers went out while 2,614 sub-lease deeds were formally completed.
Incorporated in 2007 as a dedicated project entity tied to the Jaypee Group, Jaypee Infratech Limited was established under a special-purpose structure designed to house a specific undertaking. At its core, the approach combined two strands — constructing the Yamuna Expressway as a large-scale infrastructure artery and developing real estate parcels running alongside that corridor. Jaiprakash Associates Limited, which previously served as JIL's parent company, held a stake of roughly 71.64 percent in JIL's equity at the close of the financial year ending 31 March 2017.
Signed in 2003, the concession arrangement covering the Yamuna Expressway project was drawn up with a state body that operated at the time under the name Taj Expressway Industrial Development Authority before being rechristened the Yamuna Expressway Industrial Development Authority. Under the agreement, the holder gained authority to build and run the expressway, collect tolls across a 36-year window, and put roughly 6,177 acres of land to use for development purposes. Jaypee Infratech took on both the rights and the obligations tied to the concession arrangement through a formal transfer completed in 2007.
At the heart of the homebuyer dispute sits Jaypee Greens Wish Town, a mixed-use township spread across Sectors 128, 129, 131, 133 and 134 in Noida, whose residential and commercial offerings range from Kosmos, Klassic and Krescent Homes through to Kube, Kensington and Garden Isles. Among the schemes catalogued in the historical project disclosure records were residential and mixed-use offerings spanning Jaypee Greens Aman, Orchards, Kasa Isles, Wish Point, Tanishq Square, Sunnyvale Homes, and Yamuna Vihar, alongside the apartment clusters at Kensington Boulevard and Kensington Park.
According to figures drawn from claims admitted before the NCLT, a January 2026 communication from the Enforcement Directorate put the total amount gathered by JAL and JIL from upwards of 25,000 homebuyers at around ₹14,599 crore. Homebuyer claims totalling ₹12,806 crore had been formally accepted under the resolution plan, according to tribunal-linked filings dated 29 May 2021.
Provisional attachment of immovable properties — assets carrying a combined market valuation of roughly ₹400 crore — was declared by the Enforcement Directorate on 7 January 2026, with the action covering holdings linked to both Jayaprakash Sewa Sansthan and Page 3 Buildtech Private Limited. During bail proceedings for Manoj Gaur that took place in August 2026, the Enforcement Directorate put forward figures of ₹32,825 crore in collections alongside a contention that ₹13,833 crore had been diverted. No formal verdict has been reached on these individuals, and the claims against them remain unproven allegations pending a court ruling.
The probe carried out by the ED drew its basis from a series of FIRs that the Economic Offences Wings of both Delhi and Uttar Pradesh Police had lodged after homebuyers in Jaypee Wish Town and Jaypee Greens came forward with complaints. Enforcement officers from the ED conducted searches across 15 addresses spanning Delhi, Noida, Ghaziabad, and Mumbai on 23 May 2025, targeting properties linked to JIL and JAL among other sites, and reported recovering financial records along with digital materials they described as pertinent to a probe into suspected money laundering and fund diversion.
A January 2026 press release from the ED named three entities — Jayaprakash Sewa Sansthan, Jaypee Healthcare Limited, and Jaypee Sports International Limited — as organisations the agency alleged had received portions of funds diverted away from the residential housing projects. Funds tied to both JIL and JAL were redirected toward Page 3 Buildtech Private Limited, according to the ED's case, with the agency maintaining that Honey Katiyal held effective ownership and operational control over that entity. Authorities invoked the Prevention of Money Laundering Act, 2002, as the legal basis for carrying out the attachment.
According to a statement the Enforcement Directorate put out on 7 January 2026, Manoj Gaur — who had served as chairman and managing director of JIL — was taken into custody on 13 November 2025 under Section 19 of the Prevention of Money Laundering Act and remained in judicial remand at the point that statement was issued. Court records from the proceedings that followed show a Delhi court approving an initial period of ED custody for Gaur, with temporary bail on health grounds being granted and subsequently extended, before a ruling in February 2026 brought that relief to an end and Gaur entered judicial custody upon surrendering.
A petition lodged by IDBI Bank under Section 7 of the Insolvency and Bankruptcy Code reached the NCLT on 9 August 2017, with the tribunal granting admission to the application that same day. As of 29 May 2021, the value of homebuyer claims formally accepted into the process reached ₹12,806 crore. Two rival resolution proposals — one filed by Suraksha Realty Limited, the other by NBCC — went before the committee of creditors, which ultimately backed the Suraksha plan by a voting margin of 98.66 percent.
On 7 March 2023, Suraksha's resolution plan received formal clearance from the NCLT. Appeals lodged against the NCLT's approval order were turned away by the NCLAT when that tribunal convened on 21 February 2024. When YEIDA's appeal came before the NCLAT on 24 May 2024, the tribunal directed Suraksha to release around ₹1,334 crore toward compensation owed to farmers.
Ownership of JIL passed to Suraksha when the company assumed the position in June 2024. Figures released by Suraksha that month placed the tally of finished homes at 5,989 units spread across 63 towers within Wish Town, with occupancy certificates already granted for 3,135 dwellings housed in 31 of those towers and formal applications lodged for the remaining 32 towers, which together account for a further 2,854 units.
Grievances lodged by Wish Town residents in October 2026 centred on flats that held occupancy certificates yet remained unavailable for handover, with lifts and other basic infrastructure still unfinished at the time. Pending homes are expected to be finished under Suraksha's plan by either March or September of 2028.
