A Delhi court has ordered the framing of money laundering charges against RJD president Lalu Prasad Yadav, former Bihar Chief Minister Rabri Devi and her son Tejashwi Yadav in the long-running IRCTC hotel leasing case. The case relates to alleged irregularities in the award of contracts for railway hotels in Ranchi and Puri when Lalu Prasad was Union railway minister.

Special Judge Vishal Gogne observed that there was prima facie a strong suspicion of abuse of office and proceeds of crime connected with a land transaction involving the Yadav family. The court framed charges against nine accused, while seven others were discharged. Formal charges are scheduled to be framed on October 3.

Court Flags Alleged Abuse of Office

The court's observations centre on allegations that railway officials manipulated the tender process during Lalu Prasad's tenure as railway minister.

Investigators have alleged that the contracts for operating the two IRCTC hotels were awarded to M/s Sujata Hotels Pvt. Ltd., associated with businessmen Vijay and Vinay Kochhar.

According to the prosecution, the alleged benefit to the hotel operator was followed by property transactions involving land in Patna.

Patna Land Deal at Centre of Case

The investigation alleges that 358 decimal of prime land in Patna was transferred in February 2005 to Delight Marketing Company Pvt. Ltd., a company linked to the family of RJD leader PC Gupta.

The Enforcement Directorate has alleged that the transaction was connected to the awarding of the railway hotel contracts.

The agency further alleged that ownership of the company holding the land was subsequently transferred through share transactions involving Rabri Devi and Tejashwi Yadav.

Alleged Quid Pro Quo

The CBI and ED have described the alleged arrangement as a quid pro quo, claiming that government contracts were exchanged for valuable private assets and company shares.

According to the agencies, the land and associated corporate interests eventually came under the control of members of the Yadav family at prices that were allegedly far below their actual value.

The allegations form the foundation of the money laundering proceedings now before the Delhi court.

ED Chargesheet Filed in 2018

The Enforcement Directorate filed its first chargesheet in the case in 2018. It named Lalu Prasad and several others, including RJD leader PC Gupta, his wife Sarla Gupta, Lara Projects and other individuals.

The agency has maintained that the alleged proceeds linked to the original transactions were subsequently moved through a network of companies.

The case has remained politically significant because the allegations concern decisions taken while Lalu Prasad held the Railway portfolio.

Probe Into Share Transactions

The ED has alleged that the company holding the Patna land was gradually taken over through the purchase of its shares by Rabri Devi and Tejashwi Yadav.

Investigators have questioned the source and nature of funds used in the transactions.

The agency has also claimed that some individuals identified as sellers of shares to Tejashwi denied having knowledge of holding or selling those shares, raising further questions about the transactions.

Alleged Money Trail Under Investigation

According to the prosecution's case, funds used to acquire the property had a questionable origin and were allegedly routed through a network involving 151 group companies linked to PC Gupta.

An NBFC, Abhishek Finance Company Ltd, was also cited by investigators in connection with the alleged movement of funds.

The ED has argued that these transactions formed part of a broader mechanism through which the alleged proceeds of crime were generated and subsequently transferred.

Formal Charges on October 3

The court's decision marks another major stage in the criminal proceedings against the Yadav family. However, framing of charges does not amount to a finding of guilt. The allegations will have to be established during the trial in accordance with law.

With formal charges scheduled for October 3, the case is likely to remain a major political and legal issue, particularly as the prosecution seeks to establish the alleged link between the IRCTC hotel contracts, the Patna land transaction and subsequent share dealings.