IRCTC Case: Delhi HC Seeks ED Response On Lalu Prasad Yadav’s Plea Against Framing Of Money Laundering Charges

The Delhi High Court on Thursday issued notice to the Enforcement Directorate (ED) on a plea filed by Rashtriya Janata Dal (RJD) president Lalu Prasad Yadav challenging the Rouse Avenue Court’s decision to frame money laundering charges against him in the alleged IRCTC hotels case.

Justice Sachin Datta issued notice and listed the matter for December 3. The Court also granted Yadav liberty to seek an adjournment before the trial court, which is likely to hear the matter next on October 30.

The plea challenges the trial court’s decision to frame charges against Yadav in the money laundering case arising from alleged irregularities in the leasing of two Indian Railway Catering and Tourism Corporation (IRCTC) hotels during his tenure as Union Railway Minister.

Rouse Avenue Court Frames Money Laundering Charges

On September 10, 2026, Special Judge Vishal Gogne of the Rouse Avenue Court ordered the framing of money laundering charges against Yadav, his wife Rabri Devi and son Tejashwi Yadav, among other accused.

The court 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 discharging seven others. Formal charges were scheduled to be framed on October 3.

The case, Directorate of Enforcement v. M/s. Lara Project L.L.P. & Ors., concerns alleged money laundering linked to the award of sub-lease rights for IRCTC hotels in Ranchi and Puri to M/s Sujata Hotels Pvt. Ltd.

ED Alleges Quid Pro Quo In IRCTC Hotel Tender

According to the prosecution, railway officials allegedly manipulated the tender process for awarding the hotel contracts when Lalu Prasad was the Railway Minister.

The investigating agencies allege that, in return, 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 alleges 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 ED has further alleged that the funds used to acquire the land were of dubious origin and were 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 and alleged that some individuals from whom Tejashwi Yadav purportedly purchased shares denied knowing that they held such shares.

Connected CBI Case

The money laundering proceedings arise from a case registered by the Central Bureau of Investigation (CBI) concerning the alleged manipulation of the IRCTC hotel tender process.

The CBI alleges that hotel contracts were awarded in exchange for three acres of prime land transferred through a benami company. It registered an FIR in July 2017 and conducted searches at multiple locations, including Patna, New Delhi, Ranchi and Gurugram. The ED subsequently registered a case under the Prevention of Money Laundering Act on the basis of the CBI FIR.

In a connected corruption case, the Rouse Avenue Court had framed charges against Lalu Prasad Yadav, Rabri Devi, Tejashwi Yadav and others in October 2025 for alleged offences including criminal conspiracy, cheating and corruption.

Meanwhile, Rabri Devi and Lalu Prasad Yadav have approached the Delhi High Court challenging the framing of charges in the connected proceedings. In an earlier hearing on Lalu Prasad’s plea, Justice Swarana Kanta Sharma declined to grant a stay on the trial at that stage, noting that such relief could not be considered in the absence of a response from the investigating agency.

The Delhi High Court will next consider Lalu Prasad Yadav’s challenge on December 3.