A Delhi court has framed money laundering charges against former Bihar chief minister Lalu Prasad Yadav, Rabri Devi and Tejashwi Yadav in the alleged IRCTC hotel case. Special judge Vishal Gogne also charged six other accused, while discharging seven from the proceedings. The case concerns alleged irregularities in leasing railway hotels in Ranchi and Puri during Lalu Yadav’s tenure as Union Railways Minister. Investigating agencies have alleged tender manipulation, property transfers and questionable financial transactions. The allegations remain subject to judicial determination.
Lalu Yadav and Family Face Money Laundering Charges in IRCTC Hotel Case
A Delhi court has charged Lalu Prasad Yadav, Rabri Devi and Tejashwi Yadav with money laundering in connection with alleged irregularities in two railroad hotels.
A Delhi court Thursday framed charges of money laundering against nine people, including former Bihar chief ministers Lalu Prasad Yadav and his wife Rabri Devi, in the Lalu Yadav IRCTC case.
Special judge Vishal Gogne also framed charges against Tejashwi Yadav, while seven other accused were discharged from the case proceedings. Formal charges are due Oct. 3.
The case is in connection with alleged irregularities in leasing out two hotels of Indian Railways Catering and Tourism Corporation at Ranchi and Puri during Lalu Prasad Yadav's tenure as Union Railways Minister.
The court observed that there was a prima facie case to say that a railway tender was manipulated, which allegedly led to M/s Sujata Hotels Pvt. Ltd. getting hotel lease rights.
The court, in its oral observations, said the transaction was related to land in Patna allegedly transferred through Sarla Gupta, who was said to be a close associate of Lalu Prasad Yadav.
The court said the land was later transferred through share transactions involving Rabri Devi, while Tejashwi Yadav too allegedly benefited from the property arrangement.
Alleged hotel tender and property transfers
The Central Bureau of Investigation and Enforcement Directorate said that railroad officials exploited their positions and influenced the tendering process of the Ranchi and Puri hotels.
Investigators say the sub-lease rights were given to a firm linked to Vijay Kochhar and Vinay Kochhar, that is M/s Sujata Hotels Pvt Ltd.
The agencies have characterised the alleged arrangement as a quid pro quo involving public contracts as well as transfers of valuable property and company shares.
In February 2005, 358 decimals of prime land in Patna were allegedly transferred to M/s Delight Marketing Company Pvt. Ltd., which is associated with the family of RJD leader P C Gupta.
The Enforcement Directorate alleged that the valuable Patna property held by the Delight Marketing Company was later taken over through share purchases by Rabri Devi and Tejashwi Yadav.
It also alleged that the money used for acquisition of the land was of dubious origin and routed through 151 companies connected to P. C. Gupta.
An NBFC, M/s Abhishek Finance Company Limited, was allegedly used in the financial transactions related to the property, the Enforcement Directorate said.
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ED chargesheet and allegations involving shares
In 2018, the Enforcement Directorate had filed its first chargesheet in the case naming RJD leader P C Gupta, Sarla Gupta, Lara Projects and 10 others.
The agency has also questioned the source of funds allegedly used by Rabri Devi to purchase shares in the company owning the Patna property.
Investigators also said some of the persons from whom Tejashwi Yadav allegedly bought shares denied knowledge of holding those shares.
The allegations form part of the wider prosecution case over the alleged exchange of railroad hotel contracts for private financial benefits and property interests.
The latest proceedings in court do not in themselves prove guilt, and the allegations against the accused remain to be determined by the courts in the course of the proceedings.
What happens next in the IRCTC case
The court’s framing of charges means the proceedings would now enter the next stage,e and formal charges are likely to be framed on October 3.
Investigators will continue to probe the alleged tender manipulation, property transfers, share transactions and financial routes detailed by investigators.
For those following the proceedings, the next major development will be the formal framing of charges and then the judicial examination of evidence presented by the prosecution.
Sprouts News will continue tracking the case as the court proceedings develop, including arguments from the accused, prosecution evidence, and further judicial directions.
