'Lalu kin got firm with robust assets for a pittance': ED

On September 17, the Delhi high court gave interim bail to Amit Katyal, a businessman whose company was taken over by Lalu Prasad Yadav's family.

AK Infosystems Pvt Ltd, a company belonging to businessman Amit Katyal, was taken over by former Bihar chief minister Rabri Devi and her son Tejashwi Yadav by paying a meagre ₹1 lakh in 2014 but the properties held by this firm were worth ₹63 crore, the Enforcement Directorate (ED) has claimed in its charge sheet against Lalu Yadav, Tejashwi and others in the land-for-jobs scam.

AK Infosystems, according to the ED charge sheet, reviewed by HT, was incorporated by Lalu Yadav through his close aide Katyal with a purpose to hold several land parcels in Patna. (HT Photo)

Katyal was arrested by ED on November 2023 and the Delhi high court granted him interim bail on September 17.

A Delhi court last week took cognizance of the charge sheet, filed in August under Prevention of Money Laundering Act (PMLA). Even though ED didn’t name him, the court has summoned Lalu’s second son, Tej Pratap Yadav, also in the case based on agency’s findings.

It is alleged in the land-for-jobs scam that appointment of substitutes in Group-D jobs were done in the railways during 2004-09, violating the recruitment norms and procedures of the Indian Railways. The candidates, directly or through their immediate family members, allegedly sold land to the family members of Lalu Prasad at discounted rates of up to one-fourth to one-fifth of prevailing market rates. Lalu Prasad was Union rail minister at the time.

AK Infosystems, according to the ED charge sheet, reviewed by HT, was incorporated by Lalu Yadav through his close aide Katyal with a purpose to hold several land parcels in Patna.

Once the land parcels were acquired, Katyal transferred 100% of shareholding of the company to Rabri Devi (85%) and Tejashwi Yadav (15%) on June 13, 2014, thereby making them the absolute owners of the land parcels held by the company.

“AK Infosystems, with all its underlying assets of book value amount of ₹1.89 crore, was transferred to Rabri Devi and Tejashwi Yadav, against a meagre amount of ₹1 lakh. It is worthwhile to mention that market value of assets of AK Infosystems as on June 13, 2014, was ₹63 crore as per valuation proceedings conducted by ED,” the agency added.

“In this way, the company served as tool for Lalu Prasad Yadav to conceal proceeds of crime generated in scheduled offence in a way to hide any apparent link between proceeds of crime and its real beneficiary,” it said

The financial crimes probe agency claims to have found Tejashwi Yadav’s link with another company , AB Exports Pvt Ltd (ABEPL), which is also controlled by Lalu Prasad’s family. ED says Tejashwi Yadav owns 98.25% stake in the company while his sister Chanda Yadav owns 1.75% stake in it.

It has alleged in the charge sheet that ABEPL purchased a residential property, a bungalow, D-1088 at New Friends Colony, in 2007 for ₹5 crore using optionally fully convertible debentures from five shell companies.

Tejashwi Yadav, ED said in its charge sheet, purchased shares of ABEPL in 2010 by paying merely Rs4 lakh. He reportedly resides in this bungalow whenever he is in Delhi, according to officials who didn’t want to be named.

In a press statement in March 2023, ED claimed that the present market value of this bungalow is ₹150 crore.

Apart from Lalu Prasad, Rabri Devi, Tejashwi Yadavand Katyal, ED has named Lalu Prasad’s daughters , Hema Yadav and Misha Bharti as well in the two charge sheets filed in the case so far. The first charge sheet under PMLA was filed in January this year.

The Central Bureau of Investigation (CBI) is also conducting a parallel corruption probe in the matter and has charge sheeted Lalu Prasad, Rabri Devi, Tej Pratap and Hema Yadav apart from several dozen candidates.

Lalu Prasad, Rabri Devi, Tejashwi Yadav, Hema Yadav, Misha Bharti, and Amit Katyal have received bail in the case.