The Delhi High Court on Thursday sought the Enforcement Directorate’s (ED) response to a petition filed by Rashtriya Janata Dal (RJD) chief and former Bihar Chief Minister Lalu Prasad Yadav challenging the framing of money laundering charges against him in the alleged IRCTC hotel scam.
Justice Sachin Datta issued notice to the central agency on Yadav’s plea. The Court also permitted him to seek an adjournment before the trial court until the next date of hearing before the High Court. The matter has been listed for further consideration on December 3.
Yadav has challenged the September 10 order of the trial court directing the framing of charges under the Prevention of Money Laundering Act (PMLA) against him, his wife Rabri Devi, son Tejashwi Yadav and other accused in the case.
The trial court had ordered the framing of charges against nine of the 16 accused, while discharging the remaining seven.
While directing the framing of charges, the trial court observed that there was a strong suspicion of abuse of official position and possession of alleged proceeds of crime by Rabri Devi and Tejashwi Yadav. It referred to land in Patna allegedly transferred through a series of transactions during the period when Lalu Prasad Yadav was serving as Union Railway Minister.
According to the prosecution’s case, the alleged irregularities concern the award of contracts for operating IRCTC hotels in Ranchi and Puri. The trial court had noted that railway officials allegedly manipulated the tender process to favour Sujata Hotels, whose directors were accused of facilitating the transfer of land in Patna through intermediaries and associated entities.
The land was allegedly transferred through Sarla Gupta, who is stated to have subsequently transferred shares in the company to Rabri Devi at a substantially undervalued price. The prosecution alleges that these transactions formed part of the arrangement linked to the hotel contracts.
The PMLA proceedings are separate from the corruption case registered by the Central Bureau of Investigation (CBI) in connection with the alleged scam. In the CBI case, charges relating to cheating, criminal conspiracy and offences under the Prevention of Corruption Act have been framed against Lalu Prasad Yadav and several other accused.
The ED is investigating the alleged laundering of proceeds of crime arising from the transactions connected with the award of the IRCTC hotel contracts.
Senior Advocate Kapil Sibal appeared for Lalu Prasad Yadav, assisted by a team of advocates.
The High Court’s notice marks the next stage in Yadav’s challenge to the trial court’s decision to proceed against him under the anti-money laundering law. The allegations remain subject to adjudication.
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