A Delhi court has ordered the framing of money laundering charges against former railway minister Lalu Prasad Yadav, his wife Rabri Devi, son Tejashwi Prasad Yadav and other accused in a case linked to alleged irregularities in the award of contracts for two IRCTC hotels.
Special Judge Vishal Gogne of the Rouse Avenue Court passed the order on Thursday, bringing the proceedings against the accused closer to the formal trial stage.
The court, while examining the allegations, said there was a strong suspicion that proceeds of crime had been generated through transactions involving members of the Yadav family and were subsequently enjoyed by them.
The court also rejected the defence contention that the investigation was driven by political vendetta. It observed that the nature, timing and manner in which the probe was conducted did not support that argument.
Nine accused to face trial
The court has ordered charges against nine accused in the money laundering proceedings.
They include Lalu Prasad Yadav, Rabri Devi, Tejashwi Yadav, businessman and Lalu associate Prem Chand Gupta, his wife Sarla Gupta, Sujata Hotels directors Vinay Kochhar and Vijay Kochhar, as well as Lara Projects and Sujata Hotels.
At the same time, seven accused were discharged from the case. Those discharged include Lalu Prasad’s son-in-law Rahul Yadav, Gaurav Gupta, Nath Mal Kankaria, Vijay Tripathi, Devki Nandan Tulsyan, Rajiv Relan and Abhishek Finance Private Limited.
The accused against whom charges have been ordered are scheduled to appear before the court on October 3 for the formal framing of charges.
What is the IRCTC hotel case?
The case originates from alleged irregularities during Lalu Prasad’s tenure as Railway Minister between 2004 and 2009.
The CBI has alleged that contracts for operating and maintaining the Railways’ BNR hotels in Ranchi and Puri were awarded to Sujata Hotels without following the prescribed procedures.
According to the agency’s allegations, the hotel contracts were allegedly linked to a land transaction in Patna involving a valuable property that was transferred at a price substantially lower than its prevailing market or circle rate.
The land was allegedly transferred to a company linked to the Yadav family. Investigators have described the arrangement as an alleged quid-pro-quo, suggesting that the property transaction was connected to the award of the hotel contracts.
The CBI has also alleged that the property transaction involved a company associated with Sarla Gupta, the wife of Prem Chand Gupta.
ED investigation focused on land and shares
Following the CBI case, the Enforcement Directorate initiated separate proceedings under the Prevention of Money Laundering Act (PMLA).
The ED examined the alleged proceeds generated from the transactions as well as the subsequent ownership of the company holding the Patna property.
According to the ED’s allegations, ownership and control of the company were subsequently transferred to Rabri Devi and Tejashwi Yadav through share purchases at allegedly nominal values.
The agency has further alleged that the funds used in the transactions had questionable origins and moved through a network of companies.
These allegations form the basis of the money laundering case now moving towards trial.
Court rejects political vendetta argument
The defence had argued that the investigation was politically motivated. The court, however, did not accept that contention at this stage.
Justice Gogne observed that the circumstances surrounding the investigation did not indicate that its nature, timing or progression could be explained as political vendetta.
The court’s decision does not amount to a final finding of guilt against the accused. The allegations will be tested through evidence and legal arguments during the trial.
With charges now set to be formally framed, the long-running case involving the alleged hotel contracts, Patna land transaction and subsequent financial dealings is moving into its next judicial phase.
