Delhi Court Frames Corruption and Conspiracy Charges Against Lalu Prasad, Rabri Devi, and Tejashwi Yadav in IRCTC Hotels Scam
A Delhi court on Monday formally framed charges of corruption, criminal conspiracy, and cheating against Rashtriya Janata Dal (RJD) chief and former Bihar Chief Minister Lalu Prasad Yadav in the long-running IRCTC hotels scam case being probed by the Central Bureau of Investigation (CBI).
His wife and former CM Rabri Devi, along with son and current Bihar Leader of Opposition Tejashwi Yadav, also face charges of criminal conspiracy and cheating.
The development comes at a politically sensitive time, with Bihar heading into a two-phase Assembly election next month, intensifying the political spotlight on the RJD leadership.
Allegations and CBI Findings
The CBI has alleged that during his tenure as Union Railway Minister (2004–2009), Lalu Prasad abused his position of power to grant operational and maintenance contracts for two Indian Railway Catering and Tourism Corporation (IRCTC) hotels—one in Ranchi (Jharkhand) and the other in Puri (Odisha)—to a private firm, Sujata Hotels, in exchange for valuable land in Patna transferred to his family at undervalued rates.
The case centers around a quid pro quo arrangement where prime land parcels in Patna were allegedly given to companies linked to Lalu’s family through benami transactions, in return for awarding the lucrative IRCTC contracts.
Court Observations
Delivering his order, Special Judge Vishal Gogne of Delhi’s Rouse Avenue Court noted: Lalu Prasad prima facie intervened and that too through oral instructions on two occasions… to influence the pace and process of transfer of the above BNR hotels as well as the proposed budget hotels.”
The judge further observed that there were “material modifications in the tender process”, including changes in star classification criteria and evaluation of competing bids, indicating preferential treatment for Sujata Hotels.
According to the CBI’s 2018 chargesheet, the irregularities caused wrongful loss to the public exchequer while allowing undue gains to Lalu’s family. “The land parcels were undervalued and transferred to Rabri Devi and Lalu Prasad,” the order stated.
Strong Words from the Court
The court described the suspected arrangement as a textbook case of crony capitalism, remarking:
The land and share transactions were possibly an instance of crony capitalism fostered in the garb of eliciting private participation in the Railway hotels at Ranchi and Puri, whereby commercial players ingratiated themselves to the then Minister of Railways by transferring prime land in Patna to his wife and son through his acolytes.”
While reading out the charges, the court said Lalu “abused his position as a public servant” and “manipulated eligibility conditions of the tender” to benefit his associates.
What Happens Next
All three accused—Lalu, Rabri, and Tejashwi—pleaded not guilty, maintaining that the case is politically motivated. The court has indicated that a day-to-day trial will commence in late October.
The Enforcement Directorate (ED) is also conducting a parallel probe into the “land-for-jobs” scam, which similarly alleges that members of Lalu’s family received land in exchange for government jobs during his tenure as Railway Minister.
Broader Implications
The case is seen as a major test for the RJD leadership ahead of the polls, as the charges revive memories of past corruption scandals involving the party and could influence the electoral narrative in Bihar.
Political analysts suggest that the case adds further strain to the RJD’s campaign strategy, with Tejashwi Yadav now fighting to maintain his image as a new-generation leader against the backdrop of his father’s legal troubles.
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