ED attaches ₹336 crore Alibaug land in Jai Corp money laundering case
Synopsis
The ED has attached 88.47 acres of prime Alibaug land worth ₹336 crore, alleging that Jai Corp Limited-linked entities fraudulently undervalued a SEBI-regulated fund to squeeze out investors and pocket the difference. The scheme allegedly involved suppressing the value of SPVs that held ₹2,434 crore in public money — including funds from government-owned banks.
Key Takeaways
The Enforcement Directorate has provisionally attached 88.47 acres of land at Alibaug, Maharashtra , currently valued at ₹336 crore .
The case involves Jai Corp Limited , UIVCF , and others accused of money laundering under PMLA, 2002 .
The fund raised ₹2,434 crore in 2006-07 from investors including public sector banks; the fund's term was allegedly extended illegally without SEBI approval.
The fair value of SPV assets was allegedly suppressed to ₹269.20 crore , generating proceeds of crime of ₹230 crore .
Earlier searches yielded ₹1.86 crore in cash and frozen demat and mutual fund balances of ₹99.47 crore .
The investigation, triggered by a Bombay High Court order dated 31 January 2025 , is ongoing.
The Enforcement Directorate (ED), Mumbai Zonal Office-II, has provisionally attached 88.47 acres of land at Alibaug, Maharashtra, currently valued at ₹336 crore, in a money laundering investigation involving Jai Corp Limited and associated entities under the Prevention of Money Laundering Act (PMLA), 2002. The attachment marks a significant escalation in a case that traces alleged financial irregularities spanning nearly two decades.
How the Investigation Began
The ED launched its probe on the basis of an FIR registered by the CBI's Economic Offences Branch, Mumbai, following a Bombay High Court order dated 31 January 2025. The case names Jai Corp Limited, Urban Infrastructure Venture Capital Fund (UIVCF), Urban Infrastructure Trustees Ltd, and others, with allegations of financial irregularities, diversion of funds, and money laundering.
The Fund, the Fraud, and the Undervaluation
According to the ED, in 2006-07, Jai Corp Limited launched the Urban Infrastructure Venture Capital Fund and raised ₹2,434 crore from a large number of investors, including public sector banks and other public sector financial institutions. The funds were channelled into several special purpose vehicles (SPVs) to develop real estate projects across India.
Investigators found that the fund's term was illegally extended beyond its permissible limit without approval from the Securities and Exchange Board of India (SEBI). SEBI subsequently ordered the winding up of the fund and directed that investors be given an exit based on valuations by an independent valuer.
The ED alleged that the fair value of the fund's share in the SPVs was fraudulently suppressed to ₹269.20 crore in connivance with the management of UIVCF. Investors, as a result, exited at a significantly reduced amount. Residual units of the fund were then acquired at a much lower price by five entities linked to the promoters of Jai Corp Limited.
The Alibaug Land at the Centre of the Case
One of the SPVs, Neelkanth Township and Constructions Private Limited, in which UIVCF had invested ₹51 crore, was used to acquire the land parcels at Alibaug. The fair market value of the fund's stake in this SPV was allegedly suppressed, and the five related entities acquired it at an undervalued price. This transaction is said to have generated proceeds of crime amounting to ₹230 crore.
A provisional attachment order was first issued on 31 October 2022, covering the SPV's immovable properties, then valued at ₹230 crore. Their present market value has since appreciated to ₹336 crore, according to the agency.
Earlier Seizures and What Comes Next
Prior searches in the case had already resulted in the seizure of approximately ₹1.86 crore in cash, and the freezing of demat accounts and mutual fund balances worth ₹99.47 crore. The total quantum of assets attached and frozen across the case now runs into several hundred crore rupees.
The ED has confirmed that further investigation is ongoing. Given the scale of the alleged fraud — involving public sector bank funds and a SEBI-regulated vehicle — the case is likely to draw continued regulatory scrutiny, with the possibility of additional attachments as the probe advances.
Point of View
The case also illustrates how delayed enforcement allows appreciating assets to remain in disputed hands for years. The ED's escalation now may accelerate resolution, but the broader question of investor recovery from the ₹2,434 crore fund remains unanswered.
NationPress
6 Oct 2026
Frequently Asked Questions
What has the ED attached in the Jai Corp money laundering case?
The ED has provisionally attached 88.47 acres of land at Alibaug in Maharashtra, currently valued at ₹336 crore, belonging to an SPV called Neelkanth Township and Constructions Private Limited. The attachment is part of a PMLA investigation into Jai Corp Limited and associated entities.
What is the Urban Infrastructure Venture Capital Fund and why is it under scrutiny?
The Urban Infrastructure Venture Capital Fund (UIVCF) was launched by Jai Corp Limited in 2006-07 and raised ₹2,434 crore from investors, including public sector banks. Investigators allege the fund's term was illegally extended without SEBI approval, and that asset valuations were fraudulently suppressed to benefit promoter-linked entities.
How much money was allegedly laundered in this case?
The ED estimates proceeds of crime amounting to ₹230 crore from the Alibaug land transaction alone. Additionally, earlier searches led to the seizure of ₹1.86 crore in cash and the freezing of demat and mutual fund balances worth ₹99.47 crore.
Who are the key accused in the Jai Corp ED case?
The case names Jai Corp Limited, Urban Infrastructure Venture Capital Fund (UIVCF), Urban Infrastructure Trustees Ltd, and five entities allegedly linked to the promoters of Jai Corp Limited. The investigation was initiated based on an FIR by the CBI's Economic Offences Branch, Mumbai.
What triggered the ED investigation into Jai Corp?
The ED initiated its probe based on a CBI FIR and a Bombay High Court order dated 31 January 2025. SEBI had earlier ordered the winding up of UIVCF after finding the fund's term had been extended beyond permissible limits without regulatory approval.
