A Delhi court has directed the framing of money laundering charges against Rashtriya Janata Dal (RJD) chief Lalu Prasad Yadav, his wife Rabri Devi, son Tejashwi Yadav and others in the LARA Projects-IRCTC case. Special Judge Vishal Gogne of Rouse Avenue Court said there was strong suspicion against the accused under the Prevention of Money Laundering Act.
Delhi court flags ‘strong suspicion’ in IRCTC case
During his oral observations, Judge Gogne said there exists a “strong suspicion of abuse of office and proceeds of crime” involving Rabri Devi and Tejashwi Yadav. The court referred to a Patna property allegedly transferred to them while Lalu Prasad was Union railway minister.
The judge said Rabri Devi and Tejashwi continue to enjoy the “tainted land”, which was allegedly transferred to them at the behest of Lalu Prasad. The court treated the land transaction as alleged proceeds of crime for the purpose of deciding whether the accused should face trial.
The Yadav family has denied wrongdoing and argued that there is no evidence against them. They have also maintained that the investigation is politically motivated. The court, however, found sufficient grounds at this stage to proceed against the accused.
Who faces PMLA charges and who has been discharged?
The court proceeded against nine accused in the money laundering case. Seven others were discharged.
Accused facing charges:
- Lalu Prasad Yadav
- Rabri Devi
- Tejashwi Yadav
- LARA Projects
- Sarla Gupta
- Prem Chand Gupta
- Sujata Hotels
- Vinay Kochhar
- Vijay Kochhar
Those discharged:
- Rahul Yadav
- Gaurav Gupta
- Nath Mal Kankarnia
- Vijay Tripathi
- DN Tulshyan
- Rajiv Relan
- Abhishek Finance
Formal charges are scheduled to be framed on October 3. The latest order comes after the court, on October 13, 2025, charged Lalu Prasad with corruption, criminal conspiracy and cheating in the underlying case. Rabri Devi and Tejashwi were also charged with offences including conspiracy and cheating.
What is the IRCTC hotel lease and Patna land case?
The case dates back to Lalu Prasad’s tenure as railway minister between 2004 and 2009. The CBI alleges that maintenance contracts for railway hotels in Ranchi and Puri were awarded to Sujata Hotels through a manipulated process.
Sujata Hotels was owned by Vinay Kochhar and Vijay Kochhar. Investigators allege that the contracts were awarded in exchange for a prime piece of land in Patna, making the transaction an alleged quid pro quo.
According to the CBI case, land worth crores of rupees was transferred at a price far below its prevailing market or circle rate to a company linked to the Lalu family. The agency has also alleged that the property moved through a company associated with Sarla Gupta, wife of Prem Chand Gupta.
The Enforcement Directorate later registered a case under the PMLA on the basis of the CBI FIR. Its investigation focuses on whether the land and related transactions amounted to proceeds of crime and whether those proceeds were handled or enjoyed by the accused.
