ED attaches ₹336 crore Alibaug land in Jai Corp fraud case

This is a press release from the Directorate of Enforcement (ED) announcing the provisional attachment of immovable properties worth ₹336 Crore (present market value) against Jai Corp Limited and others under the Prevention of Money Laundering Act, 2002. It matters to citizens as it details the recovery of assets alleged to be proceeds of crime arising from the undervalued acquisition of land and fraudulent fund valuations.

Who it concerns: Jai Corp Limited, Urban Infrastructure Venture Capital Limited, Urban Infrastructure Trustees Ltd, other accused entities, investors in the Urban Infrastructure Venture Capital Fund, and the public sector banks and financial institutions that invested in the fund.

What the ED says it did

• ED provisionally attached 88.47 acres of land in Alibaug valued at ₹336 Crore (present market value) and ₹230 Crore (value as on 31.10.2022).
• The investigation was initiated based on a CBI FIR registered following a Bombay High Court order dated 31.01.2025.
• ED found that Jai Corp Limited collected ₹2434 Crore from investors for a fund launched in 2006-07.
• The fund's term was illegally extended beyond permissible limits without SEBI approval, leading to its wind-up by SEBI.
• ED found that the fair value of fund shares in Special Purpose Vehicles (SPVs) was fraudulently undervalued at ₹269.20 Crore.
• Residual units of the fund were acquired at lower values by five entities related to Jai Corp Limited promoters.
• Specifically, the fair market value of the fund's share in M/s Neelkanth Township and Constructions Private Limited was suppressed, resulting in proceeds of crime of ₹230 Crore.
• Earlier search operations led to the seizure of approximately ₹1.86 Crore in cash and the freezing of ₹99.47 Crore in Demat Accounts and Mutual Funds.

Also in the document

• The document states that the investigation is still under progress.
• The provisional attachment order was issued by the ED Mumbai Zonal Office-II.