ED Arrests Amit Katyal, Alleged Associate of Lalu Prasad’s Family, in Real Estate Fraud Case

The Enforcement Directorate (ED) has arrested Amit Katyal, a prominent real estate businessman with close ties to RJD chief Lalu Prasad's family, in connection with a money laundering case. The charges against Katyal primarily revolve around allegations of cheating homebuyers in Gurugram.

The case centers on the non-delivery of flats in the Krrish Florence Estate, a housing project located in Sector 70 of Gurugram, covering an area of over 14 acres. The project was being developed by Katyal's company, Angle Infrastructure Pvt Ltd. According to official sources, Katyal was taken into custody on Monday by the ED's Gurugram zonal office under the Prevention of Money Laundering Act (PMLA).

Following his arrest, a special court in Gurugram has sent Katyal to six days of ED custody for further investigation. This is not the first time Katyal has been arrested by the ED. He was also detained in 2023 in a separate money laundering case related to the railways' alleged land-for-jobs scam, which involved Lalu Prasad, his wife Rabri Devi, and other family members.

The federal agency had already charge-sheeted Katyal in August in a third case for allegedly collecting over ₹500 crore from homebuyers for housing plots through another firm, Krrish Realtech, where he is a promoter. He was accused of diverting around ₹205 crore from the collected funds to a hotel project in Sri Lanka. The ED stated in its chargesheet that it is investigating complaints from numerous homebuyers across the country, many of whom are registered in the Delhi NCR region.

The proceeds generated from this alleged fraud were immediately diverted to the personal accounts of Katyal and other 'shell' (paper) companies, which are owned by him and his family members. The accused reportedly appointed 'dummy' directors in these shell companies, who held various immovable properties. This complex web of financial transactions and property holdings has been a key focus of the ED's investigation.

The arrest of Amit Katyal highlights the ongoing efforts of the Enforcement Directorate to combat financial crimes and protect the interests of homebuyers and the public. The case also underscores the importance of transparency and accountability in the real estate sector, particularly in high-value projects where the risk of fraud and money laundering is significant.