A special court in Gurgaon dealing with cases under the Prevention of Money Laundering Act (PMLA) has ordered the temporary release of real estate magnate Amit Katyal, who is considered a close associate of RJD chief Lalu Prasad Yadav's family. The court granted him interim bail for a period of eight weeks, citing serious health concerns.
Court Cites Health, Orders Medical Board
The order was passed by Vani Gopal Sharma, the Sessions Judge in Gurgaon who also serves as the Special Judge for PMLA cases. The court noted that Katyal, aged 50, qualifies as a "sick and infirm person" under the provisions of the PMLA law. While granting relief, the judge imposed specific conditions for the bail.
Significantly, the court directed the medical superintendent of Delhi's Sir Ganga Ram Hospital to form a specialized medical board. This board, comprising doctors relevant to Katyal's ailments, has been asked to assess his condition and submit a report within four weeks. The report must clarify whether he continues to suffer from chronic diseases and if staying in custody could worsen his health.
Background of the Case and ED's Stance
Amit Katyal was arrested by the Enforcement Directorate (ED) on November 17 in connection with a money laundering probe. The case stems from two FIRs registered earlier in Delhi and Badshahpur, Gurgaon. The allegations revolve around a real estate project developed by M/s Angle Infrastructure Pvt Ltd, a company now undergoing Corporate Insolvency Resolution Process.
Katyal, a businessman with real estate operations in Delhi, Gurgaon, and Faridabad, sought bail on medical grounds. His plea stated he suffers from chronic and serious conditions, including diabetes, hypertension, and complications from past bariatric surgery. He argued that previous courts had also recognized him as medically infirm.
The ED opposed the bail plea vehemently. The agency contended that the jail authorities were providing adequate medical facilities as per the jail manual. It also emphasized that the investigation into the case is still ongoing and active.
Allegations of a Rs 300 Crore Fraud
According to the ED's investigation, the money laundering case arises from an alleged fraud targeting homebuyers. The probe revealed that Katyal fraudulently obtained a license from another developer and began collecting funds from prospective buyers much before securing the necessary license from the Department of Town and Country Planning (DTCP) in Haryana.
The estimated proceeds of crime from this activity exceed Rs 300 crore. The project remained incomplete for over a decade, with only three towers partially built. This led the association of homebuyers to initiate insolvency proceedings against the company.
The ED probe further uncovered that Katyal made several fraudulent bookings in a project meant for central government employees to third parties. It also found evidence of diversion of funds for other purposes, which ultimately stalled the project's progress.
In a major revelation, the investigation found that during the insolvency process, Katyal alienated a part of the licensed land, measuring two acres and valued at around Rs 130 crore, to a third party at rates significantly below the market value. Additionally, substantial loans taken from a public sector bank were diverted through fraudulent transactions, causing the bank a loss of nearly Rs 80 crore.
Past Legal Troubles and Implications
This is not Katyal's first encounter with the ED. In November 2023, he was arrested in a separate money laundering case related to the alleged railways "land-for-jobs" scandal involving Lalu Prasad Yadav, his wife Rabri Devi, and other family members.
The Gurgaon court, after considering arguments from both sides, ultimately ruled in favor of granting interim bail. It held that given Katyal's documented history of chronic ailments, continued incarceration could adversely affect his health. The eight-week bail period will allow for a thorough medical evaluation while the legal proceedings continue.
