The Directorate of Enforcement (ED), Mumbai Zonal Office-II, has provisionally attached 88.47 acres of land parcels at Alibaug, currently valued at ₹336 crore, in its money laundering case against Jai Corp Limited and others. The action was taken under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, and was announced on October 6, 2026.
Origin of the case
The ED’s investigation under PMLA is based on an FIR registered by the CBI’s Economic Offences Branch in Mumbai. The FIR followed an order of the Bombay High Court dated January 31, 2025, and names Jai Corp Limited, Urban Infrastructure Venture Capital Limited, Urban Infrastructure Trustees Ltd and others. The allegations include financial irregularities, diversion of funds and money laundering.
The fund and its investors
According to the agency, Jai Corp Limited launched the Urban Infrastructure Venture Capital Fund in 2006-07 and raised ₹2,434 crore from a large number of investors, including public sector banks and other public sector financial institutions. The money was invested in multiple special purpose vehicles (SPVs) that were to undertake real estate projects across India.
Alleged extension of fund term and undervaluation
The ED has alleged that the term of the fund was extended beyond the permissible limit without obtaining approval from SEBI. The market regulator subsequently wound up the fund and directed that investors be given an exit, with the fund’s assets held in the SPVs to be valued by an independent valuer.
The agency’s investigation claims that the fair value of the fund’s shares in the SPVs was fraudulently pegged at an undervalued ₹269.20 crore, in connivance with the management of the fund. As a result, investors were allegedly given exit at significantly undervalued amounts.
The ED has further alleged that the residual units of the fund were acquired at a much lower value by five entities related to the promoters of Jai Corp Limited.
The Neelkanth Township link
Among the SPVs, the ED has pointed to M/s Neelkanth Township and Constructions Private Limited, in which the fund invested ₹51 crore. That money was used to acquire a land parcel in Alibaug. The agency alleges that the fair market value of the fund’s share in this SPV was significantly suppressed, allowing the same five entities to acquire it at an undervalued price.
According to the ED, this alleged act generated proceeds of crime amounting to ₹230 crore.
Attachment details
A Provisional Attachment Order has been issued against the immovable properties of the SPV, valued at ₹230 crore as on October 31, 2022. The present market value of these properties is ₹336 crore.
Earlier action in the case
The agency said it had earlier conducted search operations in the matter, which led to the seizure of approximately ₹1.86 crore in cash and the freezing of balances in demat accounts and mutual funds worth ₹99.47 crore. The ED has stated that further investigation is under progress.
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