NEW DELHI: A Delhi court has granted regular bail to businessman Rajesh Katyal, who was arrested by the ED for his alleged involvement in laundering over Rs 200 crore.
Special Judge Gaurav Gupta, in his order on November 14, concluded that Katyal had overcome the legal hurdles under Section 45 of the PMLA.
The court noted that the predicate offence—the basis for the money laundering charge— remains uncertain, leading to reasonable doubt about Katyal ’s involvement in the alleged crime.
The court also pointed out that Katyal had cooperated with the investigation on four separate occasions and had not attempted to flee justice or misuse his liberty.
The ED’s case is centered around allegations of a massive fraud involving over Rs 200 crore, linked to shell companies and foreign investments. Katyal, along with his brother Amit Katyal, is accused of defrauding plot buyers in the Brahma City and Krrish World projects in Gurugram. Funds were allegedly siphoned off through shell companies and diverted abroad to conceal their illicit origin.
Katyal, a director in Mahadev Infrastructure Pvt. Ltd., is accused of diverting Rs 241 crore from plot buyers into an international project in Sri Lanka while also allegedly receiving a portion of the funds from his brother. The ED claims that Katyal was a direct beneficiary of the crime.
Senior advocates Vikas Pahwa and Geeta Luthra, representing Katyal, argued that the ED had concealed crucial facts, such as the closure of several FIRs linked to the case before the ECIR was filed in 2023.
They also contended that the alleged Rs 241 crore had already been largely returned before the investigation began, with only a net sum of approximately Rs 30 lakh remaining. In granting bail, the court said Katyal did not appear to likely commit any further offences while on bail, as he had demonstrated compliance with legal procedures and shown no signs of evading justice.