Dubious deals cut: Court okays charges against Lalu Yadav, family in IRCTC scam
Dubious deals cut: Court okays charges against Lalu Yadav, family in IRCTC scam
M.U.H
10/09/202613
A Delhi court on Thursday ordered the framing of money laundering charges against former railway minister Lalu Prasad Yadav, his wife Rabri Devi, son Tejashwi Prasad Yadav and four others in a case arising from alleged irregularities in the allotment of two IRCTC hotels.
Special Judge Vishal Gogne of the Rouse Avenue Court said, “Some dubious deals are cut in plain sight. There exists a strong suspicion that proceeds of crime were generated in the name of (Yadav) family members and is being enjoyed”.
The court also rejected the defence argument that the investigation was motivated by political vendetta, observing that its nature, timing and course did not support such a conclusion.
The nine accused facing trial are Lalu Prasad, Rabri Devi, Tejashwi Yadav, Lalu's close associate Prem Chand Gupta and his wife Sarla Gupta, Sujata Hotels directors Vinay Kochhar and Vijay Kochhar, Lara Projects and Sujata Hotels.
The court discharged seven accused from the case. They 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.
ALLEGATIONS AGAINST LALU YADAV, FAMILY
The case relates to alleged irregularities between 2004 and 2009, when Lalu Prasad was the Railway Minister. The CBI has alleged that the maintenance contracts for the Railways' BNR hotels in Ranchi and Puri were awarded to Sujata Hotels in violation of established procedures.
According to the allegations, the contracts were extended to Sujata Hotels, owned by Vinay Kochhar and Vijay Kochhar, in exchange for a prime piece of land in Patna. The land, valued at crores of rupees, was allegedly transferred at a price substantially below its prevailing market or circle rate to a company linked to the Lalu family.
The CBI's case alleges that the land transaction amounted to a "quid-pro-quo" for the hotel contracts. The agency had also alleged that the property was transferred through a company associated with Sarla Gupta, wife of Prem Chand Gupta.
The ED subsequently registered a case under the Prevention of Money Laundering Act (PMLA), relying on the underlying CBI allegations and investigating the alleged proceeds of crime generated through the transactions.
The ED's probe also focused on the subsequent ownership of the company holding the Patna land. According to the agency's charge sheet, the company was later brought under the control of Rabri Devi and Tejashwi through share purchases at allegedly nominal prices.
The agency had further alleged that funds involved in acquiring the land and shares had questionable origins and were routed through a network of companies.
The CBI had registered its FIR in July 2018 in connection with the alleged favour shown to Sujata Hotels in the award of the Ranchi and Puri hotel contracts. The ED case was subsequently pursued separately under the PMLA.
The latest order moves the money laundering proceedings into the formal trial stage. The Yadav family – the accused against whom charges have been ordered – are required to appear before the court on October 3 for formal framing of charges.
The allegations will thereafter be tested through evidence and arguments during the course of the proceedings.
