The Delhi High Court recently dismissed Katyal's plea to quash the ED summons in this case. The federal agency had previously raided Katyal's premises in March, along with those of Lalu Prasad, Bihar Deputy Chief Minister Tejashwi Yadav, and others.

Katyal, identified as a "close associate" of RJD supremo Lalu Prasad and a former director of A K Infosystems Private Limited, is allegedly linked to the case. A K Infosystems Private Limited, considered a "beneficiary company" in the investigation, is associated with a residential building in New Friends Colony, south Delhi, previously utilized by Tejashwi Yadav.

The alleged scam is rooted in the period when Lalu Prasad held the position of railway minister in the UPA-1 government. It is claimed that between 2004 and 2009, individuals were appointed to Group "D" positions in Indian Railways zones. In return, these individuals purportedly transferred their land to the family members of Lalu Prasad and A K Infosystems Private Limited at substantially discounted rates.

The ED's case, filed under the criminal sections of the Prevention of Money Laundering Act (PMLA), originates from a complaint lodged by the Central Bureau of Investigation (CBI). According to the CBI, appointments were made without issuing any public notices or advertisements. Residents of Patna were allegedly appointed as substitutes in different railway zones, and in return, they or their immediate family members sold land to Lalu Prasad's family members at significantly reduced rates compared to the prevailing market rates.