Land for jobs scam: Delhi HC grants bail to businessman Amit Katyal.
The Delhi High Court has granted bail to businessman Amit Katyal, accused of money laundering in the land-for-railway-jobs scam involving former railway minister Lalu Prasad.
On Tuesday, the Delhi High Court granted bail to businessman Amit Katyal, who is accused by the Enforcement Directorate (ED) of money laundering related to the alleged land-for-railway-jobs scam involving former railway minister Lalu Prasad.
Justice Neena Bansal Krishna, in her ruling, noted that the allegations against Katyal involved a single parcel of land valued at ₹10.83 lakh, which was linked to alleged tainted money. Therefore, the requirements of Section 45 of the Prevention of Money Laundering Act (PMLA) do not apply.
The court considered Katyal’s medical condition, determining that it justified his release on bail. The ruling stated, “The allegations suggest that he acquired land worth ₹10.83 lakh with tainted money, based on the premise that the proceeds of the sale were less than ₹1 crore. The prosecution claims he purchased this land and later transferred it to other main accused, but it is alleged that its actual value was much higher.”
The court further noted, “While the ED argued that the laundered proceeds were significantly more, the only specific allegation against Katyal in the Enforcement Case Information Report (ECIR) relates to the ₹10.83 lakh land parcel. At no point has the ED quantified the proceeds of crime as exceeding this amount. Even if the land's value is argued to be 3-4 times greater, it would still be under ₹1 crore. Thus, the petitioner qualifies for exemption from the twin conditions for bail under Section 45 of PMLA.”
Additionally, the court recognized Katyal's chronic health issues, classifying him as "sick and infirm," which further supports his entitlement to bail without meeting the twin test of Section 45. The ED filed its complaint on August 16, 2022, leading to Katyal's arrest on November 10, 2023. This complaint stemmed from a CBI FIR lodged on May 18, 2022, against Lalu Prasad and others for allegedly abusing their official positions for personal gain by transferring land to family members and companies in exchange for job appointments in the Indian Railways.
The allegations indicate that seven land parcels, totaling about 1.05 lakh square feet in Patna, were acquired by Lalu Prasad's family through five sale deeds and two gift deeds. Specifically, three parcels in Mahuabagh and Kunjwa villages were transferred to Prasad’s wife, Rabri Devi, and daughter, Misa Bharti. In exchange for these land transfers, nine individuals were reportedly approved for employment in Group D positions at Central Railways. One of the parcels, belonging to Hazari Rai, was purchased by a promoter/director of M/s AK Infosystems Pvt. Ltd., a company incorporated by Katyal, for ₹10.83 lakh.
M/s AK Infosystems Pvt. Ltd. was subsequently sold to Rabri Devi and Lalu’s son, Tej Pratap Yadav, through a complete transfer of shareholding, with Katyal exiting the company by June 2014.
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