COURTKUTCHEHRY SPECIAL ON EOW CASE AGAINST SURAKASHA REALTY IN JAYPEE HOUSING PROJECTS
Delhi Police EOW Books Suraksha Realty for Alleged ₹230 Crore Funds Diversion
ED Complaint Triggers FIR Against Suraksha Group
Homebuyers Fear Further Delays in Jaypee Infratech Revival
By Our Legal Reporter
New Delhi: January 16, 2026:
In a major development in the long-running Jaypee Infratech saga, the Delhi Police Economic Offences Wing (EOW) has registered a case against Suraksha Realty Ltd and its associate Lakshdeep Investments & Finance Pvt Ltd for alleged diversion of funds. The FIR, filed on January 1, 2026, is based on a complaint by the Enforcement Directorate (ED), which accused the Suraksha Group of misusing money meant for stalled housing projects of Jaypee Infratech Ltd (JIL).
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The case has reignited concerns among thousands of homebuyers who have been waiting for their flats for nearly a decade.
ED Complaint Triggers FIR Against Suraksha Group
According to the FIR, Suraksha Realty allegedly diverted over ₹230 crore from JIL after taking control of the debt-ridden company in June 2024, following approval of its resolution plan by the National Company Law Tribunal (NCLT) and later upheld by the National Company Law Appellate Tribunal (NCLAT).
- Funds meant for construction were allegedly routed to group companies such as ITI Gold Loans Ltd, ITI Housing Finance Ltd, and ITI Finance Ltd.
- Investigators found that JIL also invested ₹107 crore in ITI Mutual Fund, linked to the Suraksha Group, instead of deploying the money for housing projects.
- The transactions reportedly originated from fixed deposits created using homebuyers’ money and toll revenues from the Yamuna Expressway.
The ED’s complaint highlighted that these actions violated the resolution plan approved by NCLT, which required Suraksha to infuse fresh equity and debt to complete stalled projects.
Homebuyers Fear Further Delays in Jaypee Infratech Revival
The allegations have sparked fresh anxiety among Jaypee homebuyers, who were promised delivery of flats within four years under Suraksha’s resolution plan.
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- Homebuyers’ claims worth ₹12,806 crore were admitted during insolvency proceedings, giving them a majority vote share in the Committee of Creditors.
- Suraksha had committed to infuse ₹125 crore in equity and ₹125 crore in debt, along with arranging ₹3,000 crore in fresh loans, to restart construction.
- However, investigations revealed that only part of the equity infusion was made, while significant funds were diverted elsewhere.
Homebuyers have reportedly approached the NCLT again, seeking a monitoring committee to oversee Suraksha’s implementation of the plan. They allege that even after a year of takeover, construction has not resumed on most projects.
Wider Legal Context
The case highlights the challenges of India’s Insolvency and Bankruptcy Code (IBC) framework, where resolution plans are often undermined by poor implementation.
- The Jaypee Infratech insolvency began in 2017 after IDBI Bank initiated proceedings.
- Suraksha Realty won the bid in 2023 by a narrow margin over NBCC, securing 98.66% votes compared to NBCC’s 98.54%.
- The resolution plan was hailed as a breakthrough for over 20,000 homebuyers, but the latest FIR raises doubts about its execution.
Legal experts say the FIR could lead to parallel investigations under IPC sections 406 (criminal breach of trust), 420 (cheating), and 120B (criminal conspiracy), alongside ongoing ED probes under the Prevention of Money Laundering Act (PMLA).
Implications of the FIR
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- For Suraksha Realty: The company faces criminal investigation and possible regulatory action, which could stall its operations.
- For homebuyers: Delivery timelines may be further delayed, deepening frustration among affected families.
- For regulators: The case underscores the need for stricter monitoring of resolution plan implementation under IBC.
- For real estate sector: The incident may dent investor confidence in insolvency resolutions involving large housing projects.
Conclusion
The Delhi Police EOW’s FIR against Suraksha Realty marks a critical turning point in the Jaypee Infratech insolvency saga. Allegations of fund diversion threaten to derail the resolution plan that was supposed to bring relief to thousands of homebuyers.
As investigations proceed, the case will test the effectiveness of India’s insolvency framework and highlight whether corporate accountability can be enforced in real estate resolutions. For now, homebuyers remain caught in uncertainty, waiting for long-promised homes while legal battles continue.
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