New Delhi, Nov 19 (PTI) The Enforcement Directorate on Wednesday said it has arrested Amit Katyal, a real estate businessman considered close to RJD chief Lalu Prasad's family, in a money laundering case linked to alleged cheating of homebuyers in Gurugram.

Katyal was taken into custody by the Gurugram zonal office of the agency on Monday under the Prevention of Money Laundering Act (PMLA).

Later, a special court in Gurugram sent him to six-day ED custody.

Katyal was arrested by the ED in 2023 too in a separate money laundering case related to the railways' alleged land-for-jobs scam involving Lalu Prasad, his wife Rabri Devi, and other family members. He later obtained bail in the said case.

The latest investigation pertains to the allegations of non-delivery of flats in the Krrish Florence Estate built over 14 acres in Gurugram's Sector 70. The project was being developed by Katyal's company, Angle Infrastructure Pvt Ltd.

According to the ED, Katyal obtained licence from another developer in a "fraudulent" manner and started collecting funds from prospective buyers much before grant of licence from DTCP (Directorate of Town and Country Planning) Haryana, leading to generation of "proceeds of crime" worth Rs 300 crore.

"The project was left incomplete for more than 10 years with only three towers constructed, and this resulted in the initiation of insolvency proceedings by the homebuyers' association," the ED said.

Probe found several "fraudulent" bookings made by Katyal to third parties in a project meant for central government employees, and "diversion" of funds for other purposes leading to stalling of the project.

The agency accused Katyal of "alienating" a part of the licensed land of 2 acres valued at Rs 130 crore at under-valued rates to third parties during the insolvency proceedings, calling it a "clear abuse of the process of law under the IBC".

Significant loans from a public sector bank were also "diverted" through fraudulent transactions and the lender suffered a loss of about Rs 80 crore, the agency alleged.

The businessman was chargesheeted in August by the federal agency in a third case for allegedly cheating homebuyers for Rs 500 crore through Krrish Realtech, of which he is a promoter. PTI NES KVK KVK

Gurugram realty fraud involves alleged money laundering, diversion of buyer funds and land alienation during insolvency proceedings. The Enforcement Directorate alleges the developer of Krrish Florence Estate fraudulently obtained a licence and collected buyer funds prior to DTCP approval, generating alleged proceeds of crime of about Rs 300 crore; the stalled project prompted insolvency proceedings, during which funds and 2 acres of licensed land were allegedly diverted or alienated at undervalued rates and significant bank loans were diverted causing an estimated Rs 80 crore loss, leading to arrest under the Prevention of Money Laundering Act.