In a major crackdown on large-scale real estate fraud, the Enforcement Directorate (ED) has arrested Amit Katyal, promoter of M/s Angle Infrastructure Pvt Ltd and — according to several media reports — a close aide of RJD chief Lalu Prasad Yadav. The arrest was made by the ED’s Gurugram Zonal Office on 17 November 2025 under the Prevention of Money Laundering Act (PMLA), 2002.
Katyal was produced before the Special PMLA Court in Gurugram, which granted six days of ED custody for custodial interrogation.
The Case: 10+ Years of Delayed Homes, Fraudulent Bookings, and ₹300 Crore ‘Proceeds of Crime’
ED initiated the probe based on multiple FIRs filed by the Gurugram Police and Delhi Police Economic Offences Wing (EOW). The case revolves around Krrish Florence Estate, a proposed residential project at Sector 70, Gurugram, spread across 14 acres. The project has been stuck for more than a decade.
Key findings of ED investigation:
1. Fraudulent Licensing & Early Collection of Money
- Katyal allegedly procured the construction license fraudulently from another developer.
- He began collecting money from homebuyers even before obtaining approval from DTCP Haryana.
- The total Proceeds of Crime (POC) from the activity exceed ₹300 crore.
2. Project Stalled for 10 Years
- Only three towers were partially constructed.
- The project never moved forward, forcing homebuyers to initiate insolvency proceedings.
3. Fraud in Government Housing Project
ED found fraudulent allotments made to third parties in a housing project meant for Central Government employees, indicating systematic diversion of flats and funds.
4. Undervalued Land Sale During Insolvency
Katyal allegedly sold 2 acres of the licensed land — valued at ₹130 crore — to outsiders at undervalued rates, violating the Insolvency and Bankruptcy Code (IBC).
5. Diversion of Public Sector Bank Loans
A PSU bank reportedly suffered a loss of ₹80 crore due to loans being routed through fraudulent transactions, ED found.
Multiple Cases, Same Modus Operandi
Katyal is also named in FIRs linked to other stalled projects including:
- Krrish World (Sector 63, Gurugram)
- Province Estate
- Other group projects reportedly following the same pattern — early collection, diversion of funds, no delivery.
Political Link: Why Katyal’s Arrest Matters
According to several national media reports, Amit Katyal has long been considered a close associate of RJD supremo Lalu Prasad Yadav and has figured in investigations involving land-for-job and land deals linked to political circles.
While the ED press release does not mention political connections, the arrest has significant political overtones, given past allegations around real-estate dealings involving political aides and land aggregation networks.
Impact on Homebuyers and the Real Estate Market
This arrest signals a tougher enforcement stance on:
- Fake bookings
- Pre-approval fund collections
- Diversion of construction funds
- Misuse of IBC to sell undervalued land
For Gurugram and NCR homebuyers — who face hundreds of stalled projects — the action is expected to push other state agencies and developers to expedite long-delayed projects.
Further Investigation Underway
ED has stated that searches, fund-tracing, and property attachment actions may follow as the investigation proceeds.
