The Enforcement Directorate has arrested Amit Katyal, a real estate businessman believed to be closely associated with RJD chief Lalu Prasad’s family, in connection with a money laundering case.
The case centers on allegations that Katyal cheated home buyers in Gurugram, official sources told PTI.
Katyal was taken into custody by the agency’s Gurugram office under the Prevention of Money Laundering Act (PMLA) on Monday.
After his arrest, a special court in Gurugram sent him to six-day ED custody for further investigation, a PTI report said.
Case details
The probe mainly pertains to allegations of non-delivery of flats in Krrish Florence Estate, located in Gurugram’s Sector 70, spread over an area of over 14 acres.
The housing project was developed by Katyal, Angle Infrastructure Pvt Ltd.
Katyal’s other legal troubles
This is not the first time that Katyal has been arrested by the ED. He was also arrested in 2023 in a separate money laundering case related to the alleged land-for-labor scam of the railways. This case involved Lalu Prasad, his wife Rabri Devi and other family members.
In August, the federal agency charged the businessman in a third case for alleged extortion ₹500 crore from home buyers for housing through another firm Krrish Realtech where he is a promoter.
He was also charged with alleged diversion ₹205 million from the collected funds for a hotel project in Sri Lanka. In its charge sheet, the ED said it is probing complaints from a number of home buyers across the country, many of whom are registered in the Delhi NCR region, Mint reported earlier.
Proceeds from this alleged fraud were “immediately diverted” to the personal accounts of Katyal and other “shell” (paper) companies owned by him and his family members, a Mint report said.
The accused allegedly appointed “fictitious” directors in these shell companies who owned various properties.
