SC transfers Sector 70 homebuyers cheating case against Amit Katyal to Delhi

On Tuesday, the Supreme Court of India transferred a money laundering case against real estate businessman Amit Katyal, involving the alleged cheating of homebuyers at the Krrish Florence Estate project in Gurgaon's Sector 70, from a Gurgaon court to a Delhi court.

A bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi passed the order on Katyal's plea. The top court directed that the Prevention of Money Laundering Act (PMLA) proceedings pending before the Special Judge, PMLA, Gurgaon, be transferred to the Special Judge, PMLA, Saket Court Complex, Delhi. The prosecution will proceed in the Delhi court from its current stage.

The bench clarified that both the Delhi and Gurgaon courts have simultaneous jurisdiction over the case. While the homebuyers were allegedly duped and the proceeds of crime were acquired in Gurgaon, where the project is situated, a part of the offence occurred through the concealment of the proceeds of crime attached in Delhi. The court noted that vast tracts of land constituting proceeds of crime have been attached in Gurgaon.

The Enforcement Directorate (ED) arrested Katyal on November 19 last year in connection with the money laundering case. The investigation relates to allegations of the non-delivery of flats in Krrish Florence Estate, a 14-acre housing project in Sector 70 developed by Katyal's company, Angle Infrastructure Private Limited.

According to the ED, Katyal fraudulently obtained the project licence from another developer and began collecting money from prospective homebuyers even before receiving approval from Haryana's Directorate of Town and Country Planning (DTCP). This action allegedly resulted in the generation of proceeds of crime worth Rs 300 crore.

The ED's investigation also found that Katyal allegedly made several fraudulent bookings in the project through third parties and diverted funds meant for a housing scheme for central government employees, which led to the project's suspension.

Additionally, the agency accused Katyal of alienating around two acres of licensed land, valued at Rs 130 crore, to third parties at undervalued rates during insolvency proceedings. The agency also alleged that substantial loans obtained from a public sector bank were diverted through fraudulent transactions, causing a loss of nearly Rs 80 crore to the lender.