India
oi-Swastika Sruti
A court in the national capital Delhi has asked for framing of charges of money laundering against former Bihar Chief Minister Lalu Prasad Yadav and his wife and son in connection with an IRCTC hotel leasing case.
A Delhi court ordered framing of money laundering charges against Lalu Prasad Yadav, Rabri Devi, and Tejashwi Yadav concerning the IRCTC hotel case, citing suspicion over a Patna property linked to alleged abuse of office during Lalu’s tenure as railway minister. Charges are set to be framed on October 3.
This case pertains to irregularities in the process of contracting the operations of two IRCTC hotels located in Ranchi and Puri at the time when Lalu Prasad was acting as union railway minister.
According to Special Judge Vishal Gogne, there is prima facie evidence of a “strong suspicion of abuse of office and proceeds of crime” related to a property in Patna that Rabri Devi and Tejashwi Yadav are continuing to occupy.
The court has scheduled the framing of charges for October 3.
What Is the IRCTC Hotel Case?
The case centres on the alleged leasing of two railway hotels in Ranchi and Puri.
The CBI and Enforcement Directorate (ED) have alleged that the tender process was manipulated while Lalu Prasad was railway minister. According to the agencies, the sub-lease rights for the two hotels were ultimately awarded to Sujata Hotels Pvt. Ltd., a company linked to businessmen Vijay and Vinay Kochhar.
Investigators allege that the hotel contracts were not simply commercial transactions but part of a larger quid pro quo arrangement.
The allegation is that valuable property and company shares were transferred to people connected to the Yadav family in return for favourable treatment in the railway hotel contracts.
How Does the Patna Land Come Into the Case?
The alleged transaction involving a prime piece of land in Patna is at the heart of the money laundering case. According to the Enforcement Directorate, 358 decimals of land in Patna were transferred in February 2005 to Delight Marketing Company Pvt. Ltd., a company associated with the family of RJD leader P C Gupta.
The agency alleges that the land transaction was connected to the awarding of the railway hotel contracts.
Investigators further alleged that the ownership of the company holding the land was subsequently changed through the transfer of its shares.
What Is the Allegation Against Rabri Devi and Tejashwi?
The ED has alleged that Rabri Devi and Tejashwi Yadav later acquired shares in the company holding the Patna property at prices far below their alleged market value.
The prosecution’s case is that this ultimately gave the Yadav family control over a valuable property.
The Delhi court, while making its oral observations, said there was prima facie a strong suspicion that Rabri Devi and Tejashwi continued to benefit from the allegedly tainted property.
These are allegations at the stage of framing of charges and will have to be established during the trial.
