New Delhi: A Delhi court on Thursday ordered the framing of money laundering charges against former railway minister Lalu Prasad Yadav, his wife and former Bihar
chief minister Rabri Devi, their son and RJD leader Tejashwi Prasad Yadav, and four others in the alleged IRCTC hotels case.
Special Judge Vishal Gogne of the Rouse Avenue Court said there was a “strong suspicion” that the accused had committed the offence of money laundering. The court also rejected the defence claim that the investigation arose from political vendetta. It said the nature, timing and course of the investigation did not support the argument.
Nine accused face trial
The nine accused set to face trial include Lalu Prasad, Rabri Devi, Tejashwi Yadav, Lalu’s close associate Prem Chand Gupta, his wife Sarla Gupta, Sujata Hotels directors Vinay Kochhar and Vijay Kochhar, Lara Projects and Sujata Hotels. The court discharged seven other accused. They are Lalu Prasad’s son-in-law Rahul Yadav, Gaurav Gupta, Nath Mal Kankaria, Vijay Tripathi, Devki Nandan Tulsyan, Rajiv Relan and Abhishek Finance Private Limited.
What ED alleged
The case concerns alleged irregularities between 2004 and 2009, when Lalu Prasad served as railway minister. The Central Bureau of Investigation alleged that contracts for the maintenance and operation of the Bengal Nagpur Railway hotels in Ranchi and Puri were awarded to Sujata Hotels in violation of prescribed procedures.
According to the agency, Vinay Kochhar and Vijay Kochhar, who owned Sujata Hotels, received the contracts in exchange for a prime parcel of land in Patna. The CBI claimed that the land, worth crores of rupees, was transferred below its prevailing market value to a company linked to Lalu Prasad’s family. The agency described the transaction as a “quid-pro-quo” for the hotel contracts. It also alleged that the property passed through a company associated with Sarla Gupta.
Company ownership examined
The Enforcement Directorate later registered a case under the Prevention of Money Laundering Act based on the CBI’s allegations. Its investigation examined the subsequent ownership of the company that held the Patna land. The ED alleged that Rabri Devi and Tejashwi Yadav later gained control of the company by purchasing its shares at nominal prices.
The agency also claimed that funds used to purchase the land and shares had questionable origins and passed through a network of companies. The CBI registered its FIR in the case in 2018. The ED later pursued a separate investigation into the alleged proceeds of crime.
Trial stage begins
The latest order moves the ED case to the formal trial stage. The accused against whom the court ordered charges must appear on October 3 for their formal framing. The prosecution will then have to prove its allegations through evidence and witness testimony during the trial.
