Realty Fraud Unveiled: Katyal's Overseas Diversion Scheme

The Enforcement Directorate has alleged a significant fraud involving a Gurugram-based realty group and its promoter, Amit Katyal. The group purportedly collected over Rs 500 crore from homebuyers for housing plots that never materialized. Instead, about Rs 205 crore of these funds were allegedly redirected to finance a hotel project in Sri Lanka.

The investigation is part of a broader probe by the agency into real estate frauds under anti-money laundering laws, especially rampant in the National Capital Region (NCR). Katyal, already entangled in a separate case linked to the RJD chief Lalu Prasad's family, was arrested by the ED earlier this year.

Legal actions are progressing with charges filed against the group's promoters. Meanwhile, the alleged funds misuse for the hotel project through shell companies, and falsification of plot buyer lists, continue to unveil new layers of deceit, posing grave concerns for the real estate sector.

(With inputs from agencies.)