Delhi court orders money laundering charges against Lalu Yadav, Rabri Devi, Tejashwi Yadav in IRCTC hotels case
PTC Web Desk: A Delhi court has ordered the framing of money laundering charges against former Railway Minister Lalu Prasad Yadav, his wife Rabri Devi and their son Tejashwi Prasad Yadav in the case linked to the alleged irregularities in the award of two IRCTC hotel contracts.
The order was passed on Thursday by Special Judge Vishal Gogne at the Rouse Avenue Court. The court said the material on record raised a “strong suspicion” of money laundering against the accused.
The court also dismissed the defence's claim that the proceedings were driven by political vendetta, saying the nature and progress of the investigation did not support such an argument.
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Nine accused to face trial
Apart from Lalu Prasad, Rabri Devi and Tejashwi Yadav, charges have also been ordered against Lalu's associate Prem Chand Gupta and his wife Sarla Gupta.
Sujata Hotels directors Vinay Kochhar and Vijay Kochhar have also been named as accused. Two companies, Lara Projects and Sujata Hotels, are also facing proceedings in the case.
The court, however, discharged seven other accused, including 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.
What is IRCTC hotels case?
The allegations date back to the period between 2004 and 2009, when Lalu Prasad was serving as Railway Minister.
The CBI has alleged that contracts to operate and maintain the Railways' BNR hotels in Ranchi and Puri were awarded to Sujata Hotels by allegedly bypassing established procedures.
Investigators have alleged that the hotel contracts were linked to a land deal involving a valuable property in Patna.
Probe focuses on alleged land deal
According to the CBI's case, land in Patna was allegedly transferred at a price much lower than its prevailing market or circle rate to a company linked to the Lalu family.
The agency has described the transaction as an alleged quid pro quo, claiming that the land deal was connected to the award of the hotel contracts.
The property was allegedly transferred through a company associated with Sarla Gupta, the wife of Prem Chand Gupta.
ED investigation under PMLA
Following the CBI case, the Enforcement Directorate initiated a separate investigation under the Prevention of Money Laundering Act (PMLA).
The ED examined the alleged proceeds arising from the transactions as well as the later ownership of the company holding the Patna property.
According to the agency's charge sheet, Rabri Devi and Tejashwi Yadav later acquired control of the company through share purchases that the ED alleges were made at nominal prices.
The agency has also raised questions over the source and movement of funds used in the land and share transactions, alleging that money was routed through several companies.
Trial to move ahead
The CBI had registered its FIR in July 2018 over the alleged irregularities in the award of the Ranchi and Puri hotel contracts.
With the latest court order, the PMLA case will now proceed towards the formal trial stage.
Lalu Prasad Yadav, Rabri Devi, Tejashwi Yadav and the other accused against whom charges have been ordered are expected to appear before the court on October 3 for the formal framing of charges.
The allegations remain subject to evidence and arguments during the trial, and the accused will have an opportunity to contest the case before the court.
- With inputs from agencies
