Land-for-jobs: Delhi court rejects Amit Katyal’s bail plea in money laundering case

New Delhi: A city court on Wednesday dismissed the bail plea of Amit Katyal, arrested in the alleged railways land-for-jobs linked money laundering case involving former Bihar chief minister Lalu Prasad Yadav and several members of his family.

No sufficient grounds to enlarge Katyal on bail: Court

Special Judge Vishal Gogne took note of the submissions made by the Enforcement Directorate (ED), which said that he may hamper the investigation and influence the witnesses if granted bail, and said there were no sufficient grounds to enlarge him on bail.

The court had earlier on April 30 refused to extend his interim bail granted on medical grounds.

Court earlier granted Katyal interim bail on medical grounds

The court had on February 5 granted one-month interim bail to Katyal on medical grounds, taking note that he urgently required an urgent cardiac procedure as well as bariatric surgery.

“He must be accorded a purposive and humane interpretation of ‘sick or infirm’ within the meaning of the proviso to section 45(1) PMLA (Prevention of Money Laundering Act),” the court had said while granting Katyal interim bail on medical grounds.

Katyal was arrested by the ED on November 11 last year under PMLA provisions on money laundering charges linked to the alleged land-for-jobs scam.

What are the allegations?

The central agency has alleged that Katyal operated companies as a front for purchasing immovable properties at undervalued rates on behalf of other accused persons in the case, including RJD chief Lalu Prasad Yadav, who was the railway minister at the relevant time, his family members and associates in return for facilitating wrongful appointment to various Group D posts in the Indian Railways and these companies were then allegedly transferred to the family members of Lalu Prasad Yadav. The ED has also claimed that Katyal is a “close associate” of the RJD chief.

ED case stems from a CBI case

The ED case stems from a Central Bureau of Investigation (CBI) case in the land-for-jobs case alleging that Lalu Prasad Yadav indulged in corruption for appointment of Group D substitutes in Indian Railways during his tenure as the railway minister during the period between 2004-2009 and the candidates were asked to transfer land as bribe in return for jobs in Indian Railways.