Lalu Yadav and Family Face Trial in IRCTC Hotel Scam: Understanding the Corruption Case Against Bihar's Political Dynasty

New Delhi:

Lalu Yadav and his Rashtriya Janata Dal party received a significant setback on Monday when charges were formally framed against the former Bihar Chief Minister in the alleged IRCTC scam case. The case now also names his son Tejashwi Yadav, a prominent RJD leader, and his wife Rabri Devi, who also previously served as Chief Minister.

With elections less than 30 days away, the RJD now faces the challenging task of dividing its attention between managing this legal case—along with the inevitable political attacks—and conducting its election campaign. The party is considered the main challenger to Nitish Kumar's Janata Dal United, which is seeking to extend its decade-long rule.

When asked by the court if they admitted guilt, Lalu Yadav and his family members pleaded not guilty. They will now stand trial on multiple charges, including cheating and criminal conspiracy related to alleged corruption in the awarding of tenders issued by the IRCTC.

The Indian Railway Catering and Tourism Corporation (IRCTC) is a public sector enterprise established in 1999 to handle ticketing, catering, and tourism services for India's state-owned railway system.

This case represents the latest in a series of corruption allegations against Lalu Yadav, which includes the infamous multi-crore fodder scam involving fraudulent withdrawals of approximately Rs 950 crore from various government accounts during his tenure as Chief Minister of undivided Bihar.

What exactly is the IRCTC case about?

The allegations center on Lalu Yadav's actions while serving as Railways Minister from 2004 to 2009 during the Congress-led United Progressive Alliance government. He is accused of directly influencing the tender process for maintenance contracts of IRCTC hotels in Ranchi (now in Jharkhand) and Puri.

Specifically, prosecutors allege that Lalu Yadav acquired three acres of valuable land in Patna through a shell company in exchange for these contracts. The maintenance contract was awarded to a private firm called Sujata Hotel, owned by brothers Vijay and Vinay Kochar.

The land was reportedly undervalued and registered in the names of Tejashwi Yadav and Rabri Devi.

Both Sujata Hotel and another corporate entity have been named as defendants in the case.

The Central Bureau of Investigation initiated its inquiry in 2006, but formal charges against Lalu Yadav weren't filed until July 2017. As part of its investigation, the agency conducted raids at twelve locations connected to the RJD leader and his family across Patna, Delhi, Ranchi, and Gurugram.

Both prosecution and defense presented arguments in Delhi's Rouse Court. The CBI maintained it had sufficient evidence against all accused parties, including Lalu Yadav, while the defense contended that the contracts were awarded through proper procedures.

In delivering its long-awaited verdict today, the court noted that "probable fraud must be tried as cheating" and stated, "The conspiracy is sublime, but is not hidden from the court's view."

The Yadav family members have been charged under Section 420 and 120B of the Indian Penal Code, which address "cheating and dishonestly inducing the delivery of property" and criminal conspiracy, respectively. Convictions under these charges could result in sentences ranging from seven years to life imprisonment, along with potential fines.

What happens next?

With charges now formally framed, the court will proceed to examine evidence against Lalu Yadav and the other accused, including witness testimony from both sides.

The formal trial will commence once the court establishes a date for proceedings.