The Jaypee Crisis Deepens: FIR Filed Against Suraksha Group Over Alleged Fund Diversion
- rit arora
- 4 days ago
- 2 min read
The long-pending Jaypee Infratech insolvency and homebuyers’ plight has taken a new and troubling turn. On January 1, 2026, the Economic Offences Wing (EOW) of the Delhi Police registered a criminal FIR against Suraksha Realty Ltd and its partner Lakshdeep Investments & Finance Pvt. Ltd. over alleged diversion of funds meant for completing stalled Jaypee housing projects.
For over 17,000 homebuyers in Jaypee Infratech’s "Wish Town," the dream of owning a home has felt like a mirage for over a decade. Just when it seemed that the takeover by the Suraksha Group in 2024 would finally bring relief, a new legal storm has hit.
The Delhi Police’s Economic Offences Wing (EOW) has filed an FIR against Suraksha Realty and its partner, Lakshdeep Investments and Finance, following a serious complaint by the Enforcement Directorate (ED).
The Allegations: Where Did the Money Go?
The core of the issue lies in the alleged diversion of funds that were strictly meant for completing the stalled housing projects. According to the ED’s investigation, rather than pouring resources into construction, funds were reportedly routed to entities linked to the promoters.
Key findings from the ED report include:
Missing Credit Lines: While Suraksha infused ₹125 crore in equity, it allegedly failed to fulfill a mandatory obligation to arrange a ₹3,000 crore credit facility within the 90-day window post-takeover.
Questionable Loans: The FIR details transactions including ₹75 crore to ITI Gold Loans and ₹25 crore to ITI Housing Finance—companies where Lakshdeep holds significant stakes.
Vehicle Financing: Another ₹135 crore was allegedly sent to ITI Finance for "vehicle loan financing."
Mutual Fund Investments: Roughly ₹107 crore was invested in ITI Mutual Fund, allegedly using proceeds from the sale of Jaypee Healthcare.
Perhaps most distressing for buyers is the claim that the source of these funds included Fixed Deposits (FDs) created using homebuyers' money and toll revenue from the Yamuna Expressway.
What’s Next for Wish Town?
The FIR has been registered under sections 406 (criminal breach of trust), 420 (cheating), and 120B (criminal conspiracy) of the IPC. This follows the arrest of former JIL promoter Manoj Gaur in late 2025.
While Suraksha recently claimed to have completed nearly 6,000 flats across 63 towers, the central agency's findings suggest that the financial "engine" meant to drive the completion of the remaining projects might be compromised.
The Bottom Line
The Jaypee Infratech insolvency was supposed to be a landmark success story for the Insolvency and Bankruptcy Code (IBC). However, if the very company "rescuing" the project is found to be diverting funds, it raises massive questions about the oversight of such resolution plans.
