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ED Arrests Lalu Prasad's Family Aide in Major Real Estate Fraud Case

Published: November 19, 2025 | Category: real estate news
ED Arrests Lalu Prasad's Family Aide in Major Real Estate Fraud Case

New Delhi: The Enforcement Directorate has arrested Amit Katyal, a prominent real estate businessman with close ties to RJD chief Lalu Prasad's family, in a significant money laundering case. The arrest was made in connection with the alleged cheating of homebuyers in Gurugram, official sources confirmed.

Katyal was taken into custody by the Gurugram zonal office of the agency on Monday under the Prevention of Money Laundering Act (PMLA). A special court in Gurugram has ordered him to be held in ED custody for six days. The investigation centers around the non-delivery of flats in the Krrish Florence Estate, a project located in Sector 70 of Gurugram, spanning over 14 acres. The project was being developed by Katyal's company, Angle Infrastructure Pvt Ltd.

This is not the first time Katyal has faced legal troubles. In 2023, he was arrested by the ED 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 businessman was also chargesheeted in August by the federal agency in a third case for allegedly cheating homebuyers to the tune of Rs 500 crore through Krrish Realtech, a company he promotes.

The Enforcement Directorate's actions highlight the ongoing efforts to combat financial crimes and protect the interests of homebuyers and the public. The case underscores the importance of transparency and accountability in the real estate sector, which has been marred by several high-profile scams and allegations of corruption.

For background, the Rashtriya Janata Dal (RJD) is a regional political party in Bihar, led by Lalu Prasad Yadav. The party has been a significant player in the state's politics for several decades, with Lalu Prasad and his family members holding key positions. The RJD has faced numerous allegations of corruption and financial misconduct, which have been the subject of multiple investigations by various agencies, including the ED.

The arrest of Amit Katyal is a significant development in the ongoing legal battles surrounding the RJD and its leadership. It is expected to have broader implications for the party and its operations, as well as for the real estate sector in Gurugram and beyond.

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Frequently Asked Questions

1. Who is Amit Katyal?
Amit Katyal is a real estate businessman with close ties to the family of RJD chief Lalu Prasad. He has been involved in several high-profile real estate projects in Gurugram and has faced legal troubles for alleged financial misconduct.
2. What is the Krrish Florence Estate project?
The Krrish Florence Estate is a real estate project in Gurugram's Sector 70, spanning over 14 acres. It was being developed by Angle Infrastructure Pvt Ltd, a company promoted by Amit Katyal. The project is at the center of allegations of non-delivery of flats to homebuyers.
3. What is the Prevention of Money Laundering Act (PMLA)?
The Prevention of Money Laundering Act (PMLA) is a law in India aimed at preventing money laundering and related financial crimes. It provides for the confiscation of property derived from, or involved in, money laundering and the prosecution of offenders.
4. What is the RJD party?
The Rashtriya Janata Dal (RJD) is a regional political party in Bihar, India, led by Lalu Prasad Yadav. The party has been a significant player in the state's politics and has faced multiple allegations of corruption and financial misconduct.
5. What are the implications of this arrest for the real estate sector?
The arrest of Amit Katyal highlights the ongoing efforts to combat financial crimes in the real estate sector. It underscores the importance of transparency and accountability, which are crucial for restoring trust in the industry and protecting the interests of homebuyers.