IRCTC scam: CBI gets HC notice on Lalu’s plea against charges

The Delhi High Court on Monday issued notice to the Central Bureau of Investigation (CBI) on a plea filed by former Bihar CM Lalu Prasad Yadav challenging a trial court order framing criminal charges against him and his family members in the alleged IRCTC hotel scam case.

A Bench of Justice Swarana Kanta Sharma said it would consider Yadav’s request for a stay on the trial proceedings on the next date of hearing, January 14, after the CBI files its reply. “Let them file a reply. You should have come earlier,” the court said, while issuing the notice.

Appearing for Yadav, senior advocates Kapil Sibal and Maninder Singh submitted that the trial court proceedings ought to be stayed. They informed the court that the trial had already commenced and the two prosecution witnesses had been examined within a month.

The challenge is directed against an October 13 order passed by Special Judge (the Prevention of Corruption Act) Vishal Gogne of the Rouse Avenue Courts, which framed charges of corruption, criminal conspiracy and cheating against the former CM in the case. Charges of criminal conspiracy and cheating were also framed against his wife and former Bihar CM Rabri Devi, and son and former Deputy CM Tejashwi Yadav.

The case stems from allegations that Lalu, while serving as the Union Railway Minister between 2004 and 2009, abused his official position to extend undue favours in the award of contracts related to the IRCTC hotels. The CBI has alleged that in exchange for these favours, Yadav and his family members received prime land parcels and company shares as illegal gratification.

According to the prosecution, two IRCTC hotels located in Ranchi and Puri were leased to a private entity, Sujata Hotels, through a manipulated tender process during Yadav’s tenure. In return, land worth crores of rupees was allegedly transferred at throwaway prices to a company purportedly linked to Rabri Devi and Tejashwi Yadav.

In its detailed October 13 order, the trial court held that there was sufficient material on record to draw a prima facie conclusion that Lalu Yadav was fully aware of, and actively involved in, the decision-making process. The court observed that he had intervened to influence the transfer of the hotels in favour of the private company.

“There were material modifications in the tender process,” the trial court noted, adding that it had emerged as a distinct possibility that the land parcels were undervalued at the time of sale before being vested in the hands of Lalu Yadav and his family members.

The court further held that the alleged acts resulted in significant loss to the public exchequer. It observed that the material on record pointed towards a larger conspiracy involving multiple actors, possibly operating through several smaller conspiracies.

Describing the transaction as a classic case of crony capitalism, the trial court said the entire exercise was carried out under the garb of promoting private participation. “This conspiracy is not entirely hidden; the entire transaction is prima facie fraudulent, and the accused cannot be discharged at this stage,” the order said.

The Yadav family has consistently denied the allegations, questioning the basis of the CBI probe and maintaining that no incriminating evidence exists against them. They have also claimed that the case is politically motivated.