ED Attaches ₹336-Crore Alibaug Land In Jai Corp Money-Laundering Probe Over ₹2,434-Cr Fund Irregularities

Mumbai, October 6, 2026: The Enforcement Directorate (ED) has provisionally attached 88.47 acres of land in Alibaug, currently valued at approximately Rs 336 crore, as part of its ongoing money-laundering investigation into alleged financial irregularities involving Jai Corp Ltd, its investment fund, and entities linked to its promoters.

The attachment was made under the Prevention of Money Laundering Act (PMLA), with the agency alleging that the land formed part of assets acquired through proceeds generated by the alleged undervaluation of investments held by an infrastructure fund.

Probe Into Rs 2,434-Crore Fund

The ED's investigation was initiated on the basis of an FIR registered by the CBI's Economic Offences Branch (EOB), Mumbai, following an order of the Bombay High Court dated January 31, 2025. According to the ED, Jai Corp had launched the Urban Infrastructure Venture Capital Fund (UIVCF) in 2006-07 and raised around Rs 2,434 crore from investors, including public sector banks and other public sector financial institutions. These capital pools were subsequently channelled into various special purpose vehicles (SPVs) for real estate projects nationwide.

The agency alleged that the fund's operational tenure was extended beyond the permissible period without securing mandatory approval from the Securities and Exchange Board of India (SEBI). In response, SEBI ordered the winding up of the fund and directed that investors be provided an exit based on an independent valuation of the fund's investments in the SPVs.

Investments Allegedly Undervalued

However, the ED alleges that the fund's share in several SPVs was fraudulently suppressed and undervalued at Rs 269.20 crore, allegedly in connivance with the management of the UIVCF. As a result, investors were provided an exit at substantially lower valuations, the agency said.

The subsequent probe revealed that the residual units of the fund were acquired at heavily discounted values by five entities allegedly linked to the promoters of Jai Corp, according to the ED.

Alibaug Land Linked To SPV

One of the SPVs under investigation is Neelkanth Township and Constructions Pvt Ltd, in which the UIVCF had invested approximately Rs 51 crore. The investment was used to acquire land parcels in Alibaug.

The ED alleged that the fair market value of the fund’s stake in the SPV was systematically suppressed before it was acquired at an undervalued price by the five promoter-linked entities. The agency has pegged the proceeds of crime generated through the transaction at around Rs 230 crore.

The properties attached in the latest action were valued at Rs 230 crore as on October 31, 2022, while their present market value is around Rs 336 crore, according to the ED.

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Earlier Search And Asset Freeze

The latest action follows an earlier search operation in the case during which the agency seized approximately Rs 1.86 crore in cash and froze demat accounts and mutual fund investments worth around Rs 99.47 crore.

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