The Supreme Court on Monday declined to entertain a petition filed by the Enforcement Directorate challenging the bail granted to Amit Katyal, a businessman and close associate of RJD chief Lalu Prasad Yadav.
Katyal’s bail is connected to a money laundering case involving the alleged land-for-jobs scam in Indian Railways.
Court’s Remarks On ED’s Selective Action
A bench comprising Justices M.M. Sundresh and Rajesh Bindal dismissed the ED’s plea, expressing no inclination to interfere with the Delhi High Court’s decision to release Katyal on bail. The bench questioned the ED’s selective approach, noting, “No big fish. Main persons have not been arrested. Why go after only small flies? Are you afraid of going after them? Why have you not arrested 11 other accused?”
Case Background
Amit Katyal, arrested by the ED on November 10, 2023, was granted bail by the Delhi High Court on September 17, 2024. The high court criticized the ED’s approach, calling it a “pick and choose” strategy. The court highlighted that although Katyal had joined the investigation, he was detained at Indira Gandhi International Airport just before boarding a flight to Ranchi, without valid justification.
Moreover, it pointed out that no other accused, despite being alleged to be the main beneficiaries, had been arrested. The court reasoned that Katyal’s role appeared less significant compared to others, and since he had cooperated with the investigation and was not considered a flight risk, bail was justified.
Details
The case is part of a larger investigation into alleged irregularities in Group D recruitments in the West Central Zone of Indian Railways, based in Jabalpur, Madhya Pradesh, between 2004 and 2009. The allegations suggest that land parcels were either transferred or given by candidates in exchange for jobs during this period.
Katyal, who was also the director of A K Infosystems Private Limited, is accused of assisting Lalu Yadav and his family in handling proceeds from these alleged corrupt practices. The ED claims that Katyal played an active role in facilitating land transactions for job seekers on behalf of Yadav. The ED also pointed out that Katyal’s company acquired land from the job seekers involved in the scam.
Legal Arguments
After being denied bail by a trial court on May 22, 2023, Katyal approached the Delhi High Court, which ultimately granted him bail on a personal bond of Rs 10 lakh, along with two sureties of the same amount. The ED, however, contended that the high court’s bail order was flawed and should be overturned.
In his arguments, Additional Solicitor General S.V. Raju, representing the ED, maintained that Katyal played a crucial role in the alleged scam and should not have been granted bail. However, the Supreme Court upheld the high court’s decision, further questioning the ED’s lack of action against the primary accused in the case.
Further Developments
The CBI had registered a case on May 18, 2022, against Lalu Yadav, his wife, two daughters, unidentified public servants, and private individuals, in connection with the land-for-jobs scandal.
Despite the ongoing investigation, Katyal remains free on bail, and the case continues to attract scrutiny regarding the handling of high-profile figures and the prosecution of alleged corruption.
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