By Manisha Sahu
America News World
October 13, 2025

In a significant development that could reshape the political landscape of Bihar just weeks before the state assembly elections, a Delhi court on Monday framed serious criminal charges against Rashtriya Janata Dal (RJD) supremo Lalu Prasad Yadav, his wife Rabri Devi, and their son Tejashwi Yadav in the long-running Indian Railway Catering and Tourism Corporation (IRCTC) hotel scam case. The ruling by Special Judge (Prevention of Corruption Act) Vishal Gogne at Rouse Avenue Courts marks a pivotal moment, propelling the case into a full trial amid accusations of corruption, criminal conspiracy, and cheating that date back to Yadav’s tenure as Union Railway Minister.

The IRCTC scam, often dubbed a “land-for-contracts” controversy, alleges a quid pro quo arrangement where lucrative railway hospitality contracts were awarded in exchange for prime real estate at undervalued prices. This case, investigated by the Central Bureau of Investigation (CBI) since 2017, has haunted the Yadav family for years, intertwining legal battles with their political fortunes. With Bihar’s polls looming—announced on October 6 for phases starting late November—the timing of the court’s decision has sparked debates over judicial independence versus electoral vendetta.

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The Allegations: A Web of Tenders, Land Deals, and Family Ties

At the heart of the case lies the alleged manipulation of tenders for the maintenance and operation of two aging IRCTC hotels: the BNR Hotel in Ranchi, Jharkhand, and another in Puri, Odisha. During Lalu Prasad Yadav’s stint as Railway Minister from 2004 to 2009 under the United Progressive Alliance (UPA) government, these heritage properties—originally built by the Bengal Nagpur Railway—were leased to Sujata Hotels Private Limited, a firm owned by Delhi-based businessmen Vijay Kochhar and Vinay Kochhar.

According to the CBI’s chargesheet filed in 2018, the tender process was rigged through “material modifications” to favor Sujata Hotels. Key irregularities included relaxing eligibility criteria, such as reducing the required experience from five years to just one, and overlooking competitive bids. In return, the agency claims, the Kochhars transferred approximately 14 acres of prime land in Patna—valued at over ₹100 crore at current market rates—to entities linked to the Yadav family for a mere ₹6.7 crore, a fraction of its worth.

The land parcels ended up under the control of AK Infosys Limited, a now-dissolved company where Rabri Devi and Tejashwi Yadav held directorships between 2007 and 2014. Shares in the firm were allegedly transferred to the duo at nominal values, allowing the family to gain effective ownership without upfront investment. “This was not mere oversight; it was a calculated conspiracy to siphon public assets into private hands,” CBI Special Public Prosecutor DP Singh argued during hearings, emphasizing how Lalu Yadav, as the “fountainhead,” intervened to expedite approvals.

Judge Gogne, in a 50-page order, echoed these sentiments, stating prima facie evidence showed Lalu Yadav’s “complete knowledge” of the processes. “There were material modifications in the tender process… It has emerged as a distinct possibility that at the point of sale, the land parcels were undervalued and then came to be vested in the hands of Lalu Yadav,” the court observed. It further described the scheme as “crony capitalism in the garb of promoting private participation,” causing “great loss to the public exchequer.” The judge rejected discharge pleas, noting “various persons engaged in a conspiracy which may have involved multiple smaller conspiracies,” and deemed the transactions “prima facie fraudulent.”

Charges framed include:

  • Against Lalu Prasad Yadav: Sections 13(2) and 13(1)(d) of the Prevention of Corruption Act (criminal misconduct by a public servant), along with IPC Sections 420 (cheating) and 120B (criminal conspiracy).
  • Against Rabri Devi and Tejashwi Yadav: IPC Sections 420 and 120B.
  • Additional accused, including former IRCTC officials VK Asthana and RK Goyal, and the Kochhar brothers, face similar conspiracy and abetment charges.

All 14 accused, who appeared in person as directed by the court on September 24, pleaded not guilty. The trial is set to commence on October 27, with day-to-day proceedings to ensure swift justice.

A Family Under Siege: From Fodder Scam to IRCTC Shadows

This is hardly the Yadavs’ first brush with corruption probes. Lalu Prasad, 77, has been a polarizing figure in Indian politics, credited with uplifting backward castes in Bihar but dogged by scandals. Convicted in multiple fodder scam cases involving the embezzlement of ₹950 crore from animal husbandry funds in the 1990s, he served jail time before being granted bail in 2022 on health grounds. Rabri Devi, 68, succeeded him as Bihar Chief Minister from 1997 to 2005, while Tejashwi, 35, rose as a fiery opposition leader and former Deputy Chief Minister, positioning himself as the RJD’s electoral heir.

The family has vehemently denied wrongdoing, labeling the IRCTC case “politically motivated.” Speaking to reporters outside the court, Lalu Prasad, wheelchair-bound but defiant, declared, “Not guilty. We will face the trial and expose the truth.” Tejashwi echoed this, accusing the BJP-led central government of weaponizing agencies like the CBI and Enforcement Directorate (ED) to target opposition leaders. “This is vendetta politics ahead of Bihar elections. The people know the truth,” he posted on X (formerly Twitter), where reactions ranged from calls for accountability to cries of “witch-hunt.”

RJD spokesperson Mritunjay Tiwari went further, claiming the CBI’s FIR in 2017—filed under BJP rule—was timed to derail Lalu’s comeback. “No concrete evidence links the family to bribes; it’s all circumstantial,” he said. Legal experts, however, point to the court’s reliance on documents like undervalued sale deeds and share transfer records as strengthening the prosecution’s hand.

Political Ramifications: Bihar’s Battleground Heats Up

With Bihar’s 243-seat assembly up for grabs, the verdict lands like a thunderbolt. The RJD-led Mahagathbandhan (Grand Alliance) is locked in a fierce contest against the National Democratic Alliance (NDA), comprising Nitish Kumar’s Janata Dal (United) and the BJP. Tejashwi Yadav, projected as the alliance’s chief ministerial face, has campaigned on youth employment and social justice, but this shadow could erode his clean image among Yadav and Muslim voters, who form the RJD’s core base.

Opposition parties pounced immediately. BJP spokesperson Sambit Patra quipped on X, “Cronyism exposed: From railways to real estate, Yadavs turned public service into family business.” JD(U)’s KC Tyagi predicted a “moral victory” for clean governance, urging voters to reject “dynastic corruption.” Analysts like Prashant Kishor warn that while the case may not convict before polls, it fuels anti-incumbency narratives, potentially shaving 5-7% off RJD’s vote share in key constituencies like Patna and Muzaffarpur.

Globally, the saga underscores India’s ongoing tussle between democracy and dynastic politics. As one X user noted, “From Bihar’s railways to Delhi’s courts, the tracks of justice are finally aligning.” Yet, for the Yadavs, it’s a familiar rail: derailed but resilient.

The trial’s outcome could redefine legacies. If convicted, Lalu faces disqualification from public office, sidelining him further. For Tejashwi, a guilty verdict might bar him from contesting under the Representation of the People Act. But in Bihar’s volatile politics, scandals often fuel sympathy votes—recall how Lalu’s imprisonments galvanized RJD in 2015.

As proceedings unfold, America News World will track developments. This case isn’t just about hotels and land; it’s a mirror to India’s fight against graft in high places.

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