Trouble mounts for Lalu family as court orders charges in IRCTC scam

New Delhi: Legal trouble mounted for RJD chief Lalu Prasad Yadav and his family on Thursday after a Delhi court ordered the framing of money laundering charges against him, former Bihar chief minister Rabri Devi, Tejashwi Yadav and six others in the alleged IRCTC hotel tender scam. Special Judge Vishal Gogne of the Rouse Avenue Courts found prima facie material to proceed against the accused under the Prevention of Money Laundering Act (PMLA). Formal charges are expected to be framed on October 3, when the accused have been directed to appear before the court. Apart from Lalu, Rabri and Tejashwi, the court ordered charges against LARA Projects LLP, former Union minister Prem Chand Gupta, Sarla Gupta, Sujata Hotels and its promoters Vijay Kochhar and Vinay Kochhar. The court made significant observations against Lalu while rejecting the family's contention that the investigation was driven by political considerations. It said there was no material at this stage to conclude that the probe against Lalu was motivated by political vendetta. The court also observed that there was a "strong suspicion of abuse of office and proceeds of crime" in the case. According to the prosecution, during Lalu's tenure as Union Railway Minister, the tender process for leasing two IRCTC hotels in Ranchi and Puri was allegedly manipulated to favour Sujata Hotels, a company associated with Vijay and Vinay Kochhar. Investigating agencies have alleged that in return, about 358 decimals of prime land in Patna was transferred in 2005 to Delight Marketing Company, which was associated with the family of Lalu's close aide Prem Chand Gupta. The prosecution alleges that control over the land subsequently passed to Lalu's family through the transfer of shares in the company at prices substantially below their alleged market value. The court treated the Patna property as alleged "proceeds of crime" and observed that the benefits arising from it were ultimately enjoyed by members of the Lalu family. It also found prima facie material suggesting that tender conditions were manipulated during Lalu's stewardship of the Railway Ministry. The money laundering case was registered by the Enforcement Directorate on the basis of the CBI's case over alleged irregularities in the leasing of the two railway hotels. The court, however, discharged seven accused: Gaurav Gupta, Nath Mal Kakrania, Rahul Yadav, Vijay Tripathi, Deoki Nandan Tulshyan, Rajiv Kumar Relan and Abhishek Finance Private Limited. Senior advocate Maninder Singh, appearing for Lalu, maintained that the prosecution was politically motivated and said the order would be challenged before the Delhi High Court. "The court has discharged seven accused with the same allegations, which shows that the case has no legs to stand. The case against Lalu Prasad and family is a result of political vendetta and will fall soon. We will challenge it in the High Court," Singh said. The development adds another layer to the legal battle involving the alleged IRCTC scam. In October 2025, the same Rouse Avenue Court had framed charges against Lalu, Rabri, Tejashwi and others in the connected CBI corruption case, including charges relating to criminal conspiracy and cheating. The family has challenged those proceedings before the Delhi High Court. The ED had filed its prosecution complaint in the money laundering case against Lalu, Rabri, Tejashwi and several companies and individuals after tracing the alleged proceeds generated from the suspected quid pro quo arrangement. The court had reserved its order on the question of framing charges after hearing arguments from the ED and the accused.