Supreme Court Denies ED’s Appeal Against Bail for Lalu Prasad Yadav’s Aide in Land-for-Jobs Scam

Case Summary

The Supreme Court of India dismissed a plea by the Enforcement Directorate (ED) challenging the bail granted to Amit Katyal, a businessman and close associate of Rashtriya Janata Dal (RJD) leader Lalu Prasad Yadav, in a money laundering case related to the alleged land-for-jobs scam in Indian Railways.

Supreme Court’s Ruling

A bench of Justices M M Sundresh and Rajesh Bindal chose not to intervene with the Delhi High Court’s decision to release Katyal on bail. The bench questioned the ED’s selective action, asking, “No big fish. Main persons have not been arrested. Why go after only small flies? Are you afraid of going after them? Why have you not arrested the other 11 accused?”

Delhi High Court’s Bail Decision

• The Delhi High Court granted bail to Katyal on 17 September last year.
• The court criticized the ED’s “pick and choose” approach.
• Katyal was detained at Indira Gandhi International Airport without proper justification.
• No other accused had been arrested in the case, even though they were alleged to be the main beneficiaries.
• Katyal’s role appeared to be less significant.
• Katyal was cooperating with the investigation and posed no flight risk.

Bail Conditions

Katyal was granted bail on a personal bond of Rs 10 lakh and two sureties of the same amount.

ED’s Argument

The ED argued that Katyal had actively assisted Lalu Yadav and his family in handling proceeds from alleged corrupt practices during Yadav’s time as railway minister. Katyal was also the director of A K Infosystems Private Limited, which the ED claimed acquired land from job seekers on Yadav’s behalf.

Land-for-Jobs Scam

• The case involves alleged irregularities in Group D recruitments in the West Central Zone of Indian Railways.
• It is alleged that land parcels were given or transferred by candidates in exchange for jobs during this period.
• The CBI registered a case on 18 May 2022 against Lalu Prasad Yadav, his wife, two daughters, unidentified public servants, and private individuals.
• Katyal had earlier been denied bail by a trial court on 22 May, prompting him to approach the high court.