Delhi Court Grants Bail to Businessman Rajesh Katyal
A Delhi court has granted regular bail to businessman Rajesh Katyal, who was arrested by the Enforcement Directorate (ED) for allegedly laundering over Rs 200 crore through his companies. Previously, Katyal had received interim bail from the Delhi High Court.
Judge’s Decision
Special Judge Gaurav Gupta granted bail on November 14, 2024, noting that the accused overcame the hurdles of Sec. 45 PMLA. The court found reasonable grounds to believe Katyal was not guilty, as the predicate scheduled offence was doubtful. Katyal had cooperated with the investigation and had not misused his liberty or attempted to flee.
Allegations Against Katyal
The ED’s case, based on eight FIRs from the EOW, Delhi Police, and Haryana, accuses Katyal and his brother Amit of defrauding plot buyers of over Rs 200 crore. The funds were allegedly funneled through shell companies and moved abroad. Katyal, a director in several companies, is accused of diverting funds from plot buyers in the Brahma City and Krrish World projects in Gurugram.
Defense Arguments
Senior Advocates Vikas Pahwa and Geeta Luthra argued that the ED concealed facts, as five out of eight FIRs were quashed before the ECIR registration. They claimed that most funds were returned before the ECIR, and only Rs 30 lakhs remained, contrary to the ED’s claim of Rs 241.18 crore.
Doubts Revealed
Delhi Court -: A Delhi Court is a place where legal cases are heard and decided in the city of Delhi, which is the capital of India.
Bail -: Bail is when a person who is accused of a crime is allowed to be free until their trial, usually by paying money as a promise to return for the trial.
Money Laundering -: Money laundering is when people try to hide where money came from, especially if it was earned illegally, by making it look like it came from a legal source.
Predicate Offence -: A predicate offence is the original crime that leads to other crimes, like money laundering. If the original crime is doubtful, it means there might not be enough evidence to prove it happened.
Shell Companies -: Shell companies are businesses that exist only on paper and have no real operations. They are often used to hide money or avoid taxes.
ED -: ED stands for Enforcement Directorate, which is a government agency in India that investigates financial crimes like money laundering.
ECIR -: ECIR stands for Enforcement Case Information Report, which is a report made by the ED when they start investigating a financial crime.