IRCTC Hotels Money Laundering Case: Delhi Court Orders Framing of Charges Against Lalu Prasad, Family

A Special Delhi Court ordered the framing of money laundering charges against former Union Railways Minister Lalu Prasad Yadav, former Bihar Chief Minister Rabri Devi, former Deputy Chief Minister Tejashwi Yadav, M/S Lara Projects LLP, and four others in connection with the Enforcement Directorate’s (ED) probe into the IRCTC hotel scam. Special Judge Vishal Gogne observed that there is a "strong suspicion of abuse of office and proceeds of crime" generated through rigged tenders and land transfers. Out of sixteen accused named in the ED charge sheet, the court ordered charges against nine entities and individuals while discharging seven others.

Court Observations on Abuse of Power and Tainted Assets

While ordering the framing of charges under the Prevention of Money Laundering Act (PMLA), the special court noted that railway tenders were manipulated during Lalu Prasad Yadav's tenure as Railways Minister between 2004 and 2009. President Sanctions Prosecution of Lalu Prasad Yadav in Land-for-job Money Laundering Case.

The court pointed out that maintenance leases for IRCTC-run BNR hotels in Ranchi and Puri were awarded to private firm Sujata Hotels in exchange for a prime three-acre land plot in Patna. According to the court's observation, the land was initially transferred to Sarla Gupta, a close associate of Lalu Prasad Yadav, before its shares were transferred to Rabri Devi and Tejashwi Yadav at nominal rates through Lara Projects LLP.

Formal Charges Scheduled for October 3

The ED case stems from an earlier corruption case registered by the Central Bureau of Investigation (CBI) in July 2017. The investigation revealed that illicit gains were laundered through a web of shell companies and real estate transactions to acquire assets below market value.

Following the ruling on September 10, 2026, the court fixed October 3 for the formal framing of charges against the nine accused. The court discharged seven other co-accused after finding insufficient ground to proceed against them under PMLA provisions. IRCTC Scam Case: Lalu Prasad Yadav Approaches Delhi HC Against Framing of Charges.

Background and Legal Timeline

The IRCTC hotel case pertains to alleged irregularities in awarding operational contracts for railway-owned heritage hotels in Ranchi and Puri. The CBI had previously filed a charge sheet in April 2018 under IPC provisions for cheating, criminal conspiracy, and provisions of the Prevention of Corruption Act.

The ED subsequently initiated parallel proceedings to trace and attach the proceeds of crime derived from the predicate CBI offense. Last year, the trial court framed criminal charges in the CBI predicate case. While the accused have consistently denied all allegations, claiming political vendetta and maintaining that hotel tenders were awarded following transparent procedures, today's order pushes the financial probe into its full trial stage.

(The above story first appeared on LatestLY on Sep 10, 2026 04:01 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).