Close Aide of Lalu Prasad Yadav, Builder Amit Katyal, Arrested in Gurugram for Alleged Money Laundering and Real-Estate Fraud

In a major action linked to alleged real-estate fraud, the Enforcement Directorate (ED) has arrested Amit Katyal, a prominent builder considered close to RJD chief Lalu Prasad Yadav and his family. Katyal was detained under the Prevention of Money Laundering Act (PMLA) at the ED’s Gurugram regional office on Monday. A special Gurugram court has since sent him to six-day ED custody.

Not the First Time Katyal Has Been Arrested

Katyal had earlier been arrested in 2023 in connection with the Railway “Land-for-Jobs” scam, a case that also named Lalu Prasad Yadav, Rabri Devi, and other family members. He was later granted bail in that matter.

What Is the Current Case About?

The latest case revolves around alleged fraud linked to the Krish Florence Estate project in Gurugram’s Sector 70, spread across 14 acres. The project was being developed by Katyal’s company Angle Infrastructure Pvt. Ltd.

According to the ED:

• Katyal fraudulently obtained a development license through another builder.
• He started collecting money from prospective homebuyers even before receiving a license from Haryana’s Directorate of Town and Country Planning (DTCP).
• This resulted in the generation of proceeds of crime worth nearly ₹300 crore.

10-Year Project Delay and Massive Buyer Losses

The project remained incomplete for over a decade, with only three towers constructed.
This led the homebuyers’ association to initiate insolvency proceedings.

The ED’s investigation further found that:

• Katyal made several fraudulent bookings in a government employees’ housing project.
• Collected funds were diverted for other purposes, causing the project to stall.

Land Diversion and Bank Loan Misuse

The ED accused Katyal of illegally separating and selling 2 acres of licensed land—valued at around ₹130 crore—during insolvency, at a lower price to a third party, violating IBC norms.

Additionally:

• A major loan from a public sector bank was allegedly diverted through fraudulent transactions.
• This caused a loss of approximately ₹80 crore to the lender.

Multiple Fraud Cases Already Registered

The ED had previously filed a chargesheet in August against Katyal in another case involving ₹500 crore fraud, carried out through Krish Realtech, a promoter company linked to him.