What is the IRCTC hotel scam case involving Lalu Prasad Yadav, Rabri Devi, and Tejashwi Yadav

Lalu Yadav

A Delhi court on Monday formally framed charges against former Railway Minister Lalu Prasad Yadav, former Bihar Chief Minister Rabri Devi, their son and RJD leader Tejashwi Yadav, and others in connection with alleged corruption in the award of tenders for two IRCTC hotels in Ranchi and Puri. All the accused, including Lalu Yadav, pleaded not guilty and said they would face trial.

The IRCTC land-for-hotels scam refers to allegations that former Railway Minister Lalu Prasad Yadav and his family received prime land in exchange for awarding maintenance contracts for two Indian Railway Catering and Tourism Corporation (IRCTC) hotels to a private company in violation of norms.

Background and alleged conspiracy

The alleged irregularities took place between 2004 and 2009, when Lalu Prasad Yadav was serving as the Union Railway Minister in the UPA government.

The Central Bureau of Investigation (CBI) has alleged that contracts for the maintenance and operations of two IRCTC hotels, BNR Ranchi and BNR Puri, were awarded to Sujata Hotels, owned by businessmen Vijay and Vinay Kochhar, in exchange for prime land in Patna. According to the CBI, the tender process was manipulated, and eligibility criteria were altered to favour Sujata Hotels.

The quid pro quo arrangement

In return for these contracts, a three-acre plot of land in Patna was allegedly transferred to a company called Delight Marketing Company, later renamed Lara Projects LLP. The company was allegedly controlled by associates of the Yadav family.

The land was said to have been sold at a price much below market value and was later transferred to the names of Rabri Devi and Tejashwi Yadav. The CBI maintains that this was a classic case of quid pro quo, where public contracts were exchanged for valuable private property.

The FIR and investigation

The CBI registered an FIR in July 2017, naming Lalu Yadav, Rabri Devi, Tejashwi Yadav, and several others, including the Kochhar brothers and former IRCTC managing director P.K. Goel. Raids were carried out at multiple locations linked to the Yadav family in Patna, Delhi, Ranchi, and Gurugram.

Legal developments

On March 1, 2025, the CBI concluded its arguments on framing charges. The prosecution, represented by Special Public Prosecutor D.P. Singh, argued that there was clear evidence of corruption and conspiracy.

On Monday, Special Judge Vishal Gogne framed charges against 14 accused persons under sections related to criminal conspiracy and cheating of the Indian Penal Code (IPC) and provisions of the Prevention of Corruption Act.

Lalu Prasad Yadav, Rabri Devi, and Tejashwi Yadav have been charged with sections 120B (criminal conspiracy) and 420 (cheating) of the IPC. Lalu has also been charged under sections of the Prevention of Corruption Act as a public servant.

Defence and next steps

All the accused have denied wrongdoing. Lalu Prasad Yadav has maintained that the case is politically motivated and that no evidence supports the charges. Rabri Devi and Tejashwi Yadav also pleaded not guilty, stating they will face the trial.

The court’s framing of charges marks a key procedural step, allowing the case to move from pre-trial arguments to a full-scale trial phase. The next hearings will involve the examination of witnesses and evidence presented by the CBI.

Timeline

2004–2009: Alleged scam period during Lalu’s tenure as Railway Minister

July 2017: CBI registers FIR and conducts raids

March 2025: CBI concludes arguments on framing charges

October 13, 2025: Court frames charges; all accused plead not guilty

Next phase: Trial proceedings to begin before the Rouse Avenue Court

The case is among several corruption-related probes against Lalu Prasad Yadav, who has previously been convicted in separate fodder scam cases but is currently out on bail. This IRCTC case now enters its trial phase after eight years of investigation and pre-trial hearings.