Money Laundering Case: Delhi Court Grants Regular Bail To Businessman Rajesh Katyal

Businessman Rajesh Katyal, who was arrested by the Enforcement Directorate for allegedly laundering over Rs.200 crore in proceeds of crime, on Saturday has been granted regular bail by a Delhi court.

Katyal had previously been granted interim bail by the Delhi High Court.

Special Judge Gaurav Gupta, in his order passed on November 14, 2024, noted that Katyal had overcome the twin hurdles under Section 45 of the Prevention of Money Laundering Act.

The judge pointed out that the existence of the predicate scheduled offence was doubtful and there were reasonable grounds to believe that Katyal was not guilty of the alleged offence. Katyal’s cooperation with the investigation was highlighted, with the court noting that he had joined the investigation on at least four occasions without misusing the liberty granted to him or attempting to flee justice.

The court observed that Katyal did not appear likely to commit any offence while on bail. The case against him, initiated by the ED, is based on eight FIRs from the Economic Offences Wing of Delhi Police and Haryana Police.

The ED has accused Katyal, along with his brother Amit Katyal and their associates, of defrauding plot buyers of over Rs 200 crore. The alleged scam centers on funds from buyers of plots in the Brahma City and Krrish World projects in Gurugram.

These funds were allegedly channeled through multiple shell companies and moved abroad to hide their illicit origin.

Rajesh Katyal, a key figure and director in several companies within the Katyal Group, is accused of conspiring with his brother and others to launder the proceeds of crime. The ED claims that Mahadev Infrastructure Pvt. Ltd., where Katyal held a directorial role, received Rs 241.18 crore from plot buyers. Of this, Rs 205 crore was allegedly invested in a real estate and luxury hotel project in Sri Lanka through Krrish Transworks (Colombo) Pvt. Ltd., using the RBI’s Overseas Direct Investment (ODI) route.

Additionally, Rajesh Katyal is accused of receiving Rs 65 crore from his brother Amit Katyal, through Iceberg Trading Pvt. Ltd. Of this amount, Rs 50 crore was allegedly treated as a gift and concealed. The ED claims that Katyal was a direct beneficiary and helped launder the illicit funds.

In court, Senior Advocates Vikas Pahwa and Geeta Luthra, representing Katyal, argued that the ED had not come clean before the court and had deliberately concealed important facts. They pointed out that the Enforcement Case Information Report (ECIR) was registered in 2023, yet five out of the eight FIRs that formed its basis had already been quashed or closed years earlier.

This fact, they argued, was not disclosed by the ED in its remand application. The defense also contended that the amount of Rs 241.18 crore claimed by the ED as proceeds of crime was misleading, as most of the funds had already been paid back before the registration of the ECIR.

According to the defense, the ED had full knowledge that, after reviewing the balance sheets, only around Rs.30 lakh was received, but this was deliberately concealed.

The court’s decision to grant regular bail reflects the ongoing legal battle and the complex nature of the charges against Katyal.

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