IRCTC Hotels Case: Delhi Court Orders Money Laundering Charges Against Lalu, Rabri, Tejashwi
Delhi court ordered framing of money laundering charges against Lalu Prasad Yadav, Rabri Devi and Tejashwi Yadav in the IRCTC hotels case
A Delhi court on Thursday ordered the framing of money laundering charges against former Bihar Chief Minister Lalu Prasad Yadav, Rabri Devi and RJD leader Tejashwi Yadav in connection with the alleged irregularities in the leasing of two IRCTC hotels in Ranchi and Puri during Lalu Prasad's tenure as Union Railway Minister.
Special Judge Vishal Gogne observed that there was a “strong suspicion of abuse of office and proceeds of crime” in the hands of Rabri Devi and Tejashwi Yadav, who allegedly continued to benefit from a tainted parcel of land in Patna transferred during Lalu Prasad's tenure as Railway Minister.
The court framed charges against nine accused persons, including Lalu Prasad, Rabri Devi and Tejashwi Yadav, while seven others were discharged. The court said formal charges would be framed on October 3.
Alleged quid pro quo in IRCTC hotel tender
The case relates to the alleged manipulation of the tender process for awarding the sub-lease rights of IRCTC hotels at Ranchi and Puri to M/s Sujata Hotels Pvt. Ltd., a company associated with Vijay and Vinay Kochhar.
According to the prosecution, railway officials allegedly manipulated the tender process when Lalu Prasad was the Railway Minister, resulting in the award of the hotel leases.
In return, the investigating agencies allege that 358 decimals of prime land in Patna were transferred in February 2005 to M/s Delight Marketing Company Pvt. Ltd., a company associated with the family of RJD leader PC Gupta.
The prosecution case is that the land was subsequently linked to the transfer of shares in the company to Rabri Devi and Tejashwi Yadav at allegedly nominal prices.
The court, while considering the material placed before it, noted prima facie allegations that the tender process was manipulated and that the Patna land was transferred through a series of transactions allegedly connected with the award of the railway hotel contracts.
ED alleges money laundering through multiple companies
The Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) have alleged that Lalu Prasad and certain IRCTC officials misused their positions to manipulate the tender process and facilitate the award of the hotel contracts.
The agencies have described the alleged arrangement as a quid pro quo, claiming that public contracts were exchanged for valuable private property, land and company shares that ultimately benefited the Yadav family.
The ED has further alleged that the funds used in the acquisition of the Patna land were of dubious origin and were allegedly routed through a network of 151 companies linked to PC Gupta, with an NBFC, M/s Abhishek Finance Company Ltd., allegedly being used in the transactions.
The agency also questioned the source of funds used by Rabri Devi to acquire the shares. It alleged that some individuals from whom Tejashwi Yadav purportedly purchased shares denied having knowledge of holding such shares.
The ED had filed its first chargesheet in the case in 2018, naming Lalu Prasad, Rabri Devi, Tejashwi Yadav, PC Gupta, Sarla Gupta, Lara Projects and several others.
The matter will now proceed towards formal framing of charges on October 3.
Notably, on October 13, 2025, the Rouse Avenue Court had already framed charges against Lalu Prasad Yadav, Rabri Devi, Tejashwi Yadav and others in the connected IRCTC hotels scam case being prosecuted by the CBI. In that case, the court framed charges for criminal conspiracy, cheating and offences related to corruption.
According to the CBI, while Lalu Prasad Yadav was Railway Minister, IRCTC hotel contracts were allegedly awarded in exchange for three acres of prime land transferred through a benami company. The CBI registered an FIR in July 2017 and conducted searches across multiple locations in Patna, New Delhi, Ranchi and Gurugram. The ED subsequently registered a PMLA case on the basis of the CBI FIR and carried out a parallel investigation.
With the trial court now reserving orders on framing of charges, the proceedings in the money laundering case are poised to enter a crucial stage next month.
Meanwhile, Rabri Devi has moved the Delhi High Court seeking a stay on the framing of charges, in the above mentioned case. A similar petition by her husband Lalu Yadav was also listed before the high court. Justice Swarana Kanta Sharma had declined to grant a stay on the trial against Yadav at this stage, noting that such relief could not be considered in the absence of a response from the investigating agency.
Pertinently, in March 2023, the Delhi Court had granted bail to former Rashtriya Janata Dal (RJD) Chief Lalu Prasad Yadav, his wife Rabri Devi, daughter Misa Bharti and others in connection with the Indian Railway Catering and Tourism Corporation (IRCTC) scam case registered by the Central Bureau of Investigation (CBI). It is to be noted, that on February 27, 2023, the Delhi Court had issued summons to Lalu Yadav, his wife Rabri Devi, daughter Misa Bharti and 13 others in the present case while observing, “A perusal of the charge sheet and the documents and material on record, prima facie shows the commission of offences under Section 120B read with Sections 420, 467, 468 and 471 IPC and Sections 8, 9, 11, 12, 13 (2) read with Section 13 (1) (d) of PC Act, 1988 and substantive offences thereof. Accordingly, cognizance is taken of the said offences.”
Case Title: Directorate of Enforcement v. M/s. Lara Project L.L.P. & Ors.
Bench: Special Judge Vishal Gogne
Order Date: September 10, 2026