In a major development, Amit Katyal arrested again after the Enforcement Directorate (ED) accused him of cheating homebuyers in Gurgaon. Katyal, once close to former Railway Minister Lalu Prasad Yadav, now faces fresh trouble linked to long-pending real estate projects. His arrest has once again highlighted growing concerns about fraud in the booming property market.
Katyal already faced legal action on November 23, 2023, in another case involving land-for-jobs deals. That earlier case also involves Lalu Prasad Yadav, his family, and former Bihar Deputy Chief Minister Tejashwi Yadav, who all face allegations of bribery and money laundering. Because of these past links, the new accusations against Katyal have drawn even more attention.
The latest case centers on the Krrish Florence Estate project in Sector 70, Gurgaon. This project has remained stuck for more than 10 years. Although three towers stand on the site, none of them are complete. As frustration grew, homebuyers formed an association and began insolvency action against Katyal to recover their losses.
Additionally, Katyal is connected to another project under Angle Infrastructure Pvt Ltd, where he serves as the promoter director. Investigators say he misused funds collected from buyers. They also claim he illegally secured a licensing agreement and collected money before receiving mandatory approval from Haryana’s Department of Town and Country Planning (DTCP). The ED reports that the scam crossed Rs 300 crore, showing the scale of financial wrongdoing in the sector.
Many buyers say they invested their life savings, hoping for a home that never came. They now feel betrayed, anxious, and uncertain about recovery. Since real estate scams have increased across northern India, including Gurgaon, Mohali, and Chandigarh, this case reflects a much larger problem. Thousands of families struggle when developers fail to deliver promised homes.
The ED’s investigation began after the Gurgaon and Delhi police received detailed complaints about the non-delivery of flats. Officers claim Katyal also made illegal bookings for third parties and diverted buyer funds for his own benefit. A court has now sent him to six days of ED custody, allowing investigators to examine more financial records and past transactions.
Meanwhile, real estate experts say buyers should stay alert. They recommend reviewing a developer’s earlier projects, financial history, and approval documents before investing. Because the sector grows rapidly, fraudsters often take advantage of buyers who trust developers without checking details.
Authorities say strict action is necessary to rebuild confidence in the housing market. Strong regulation, regular audits, and faster legal support can protect homebuyers from future scams. Many believe developers must face tougher penalties when they misuse public money.
In conclusion, the case of Amit Katyal arrested again serves as a clear warning for homebuyers and a challenge for regulators. It shows why stronger laws, informed buyers, and strict monitoring are essential to keep the real estate market safe and transparent.
