New Delhi: In a setback for Rashtriya Janata Dal (RJD) chief Lalu Prasad Yadav and his family, a Delhi court on Wednesday ordered the framing of charges against them in the IRCTC hotel scam case.
The Rouse Avenue Court said the accused would face trial under Sections 420 (cheating) and 120B (criminal conspiracy) of the Indian Penal Code, along with provisions of the Prevention of Corruption Act, after they pleaded not guilty.
Special judge Vishal Gogne had reserved the order on May 29 following detailed arguments on charges of criminal conspiracy, cheating and corruption against Lalu Prasad, his son and Bihar Deputy Chief Minister Tejashwi Yadav, Prem Gupta, Sarla Gupta, and former railway officials Rakesh Saksena and P.K. Goyal.
The alleged scam dates back to 2004–2009, when Lalu Prasad served as the Union Railway Minister. The case pertains to alleged irregularities in awarding maintenance contracts for two IRCTC hotels to a private firm during his tenure.
According to the Central Bureau of Investigation (CBI), one of the hotels was allotted to Sarla Gupta, wife of Prem Gupta, a close associate of Lalu Prasad and a former Rajya Sabha MP. Investigators allege that Lalu Prasad received three acres of prime land through a benami company as quid pro quo.
Lalu Prasad has denied any wrongdoing, asserting that the contracts were awarded transparently and seeking a discharge from the case.
The development comes soon after the Supreme Court declined to entertain Lalu Prasad’s plea to stay the trial court proceedings in the related land-for-jobs case. He had challenged the Delhi High Court’s decision refusing to halt the trial.
The trial court had earlier taken cognisance of multiple charge sheets filed by the CBI under the Prevention of Corruption Act. The agency has alleged that between 2004 and 2009, Lalu Prasad accepted financial benefits in the form of land transfers to his family members in exchange for appointments to Group D posts in various railway zones.
The CBI claims several Patna residents transferred or gifted their land to Lalu Prasad’s family members or to a private company controlled by them in return for railway jobs.