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Synopsis

The Delhi High Court has refused to quash Enforcement Directorate (ED) proceedings against businessman Amit Katyal, who is accused of engaging in transactions with the family members of former railways minister Lalu Prasad Yadav in connection with the land-for-railway-jobs scam.

The bench of Justice Swarana Kanta Sharma emphasized that the investigation into the matter was still ongoing and that Katyal had been summoned by the ED to appear and submit certain documents.

The court held that it could not stifle the investigation at this preliminary stage when Katyal had only received summonses to provide documents.

"The investigation in the present ECIR is still continuing, and the petitioner has merely been summoned to appear and submit certain documents. Even as per the petitioner's own case, he has joined the investigation in the present ECIR upon being summoned by the Directorate of Enforcement on six occasions in the past, between March and August 2023. Thus, no tenable grounds have been shown as to why the impugned summons deserve to be quashed," the court's order dated November 3 stated.

Justice Sharma also pointed out a contradiction in Katyal's arguments. While he claimed not to possess the ECIR (Enforcement Case Information Report) and to be unaware of whether he had been named as an accused, he simultaneously sought the quashing of the ECIR concerning him.

Therefore, court rejected Katyal's pleas to quash the ED's summons or to direct the agency not to take any coercive action against him. Court opined that the request to quash the ECIR was premature and lacked merit, as it was based on insufficient grounds.

Amit Katyal had approached the High Court, expressing concerns that he might be arrested in the case, especially given the ED's raids on locations linked to him. He informed the court that he had been summoned by the ED multiple times and had cooperated with the investigation. Despite not being an accused in the initial offense, he had been repeatedly called in for questioning.

The land-for-jobs scam, involving several crores of rupees, pertains to allegations of land exchanged as bribes to secure Group D jobs in the Indian Railways during 2004–2009, when Lalu Prasad Yadav served as the Railways Minister. Yadav and his family members faced accusations of accepting land as bribes in exchange for appointments to these positions.

Amit Katyal's involvement in the case is linked to his tenure as the Director and major shareholder of M/s AK Infosystem Pvt Ltd. The company allegedly received land parcels from a relative of a candidate who secured a Group D substitute position in the Indian Railways. In 2014, this company was transferred to Lalu Yadav's family members without the exchange of any money.

The ED also alleged that the proceeds of the crime were used to acquire a property in New Friends Colony, New Delhi, in the name of M/s AB Exports Private Limited. Katyal, who was considered a close associate of Lalu Yadav, was said to have applied for the electricity connection for the said property, allegedly to facilitate its use by Lalu Prasad Yadav and his family.

Case Title: Amit Katyal v Directorate of Enforcement