IRCTC Hotel Scam Case: What Lalu Prasad Yadav, Rabri Devi And Tejashwi Yadav Are Accused Of

Last Updated:October 13, 2025, 17:08 IST

A Delhi court has framed charges against Lalu Yadav, Rabri Devi and Tejashwi in the IRCTC hotel scam, setting the stage for a full-fledged trial just weeks before Bihar elections

RJD chief Lalu Prasad with party leaders Tejashwi Yadav and Rabri Devi. (PTI Photo)

A major corruption case linked to former Bihar Chief Minister and Rashtriya Janata Dal (RJD) chief Lalu Prasad Yadav is now heading to trial, after a Delhi court on Monday formally framed charges against him, his wife and former CM Rabri Devi, and their son Tejashwi Yadav. The case, popularly known as the IRCTC land-for-hotels scam, alleges that when Lalu was Union Railways Minister between 2004 and 2009, he abused his official position to award maintenance contracts for two Railway hotels to a private firm in exchange for prime land in Patna, which was later transferred to his family members.

All three accused have pleaded not guilty. But with barely a month left for the Bihar Assembly elections, where the RJD is the main challenger to the JD(U)-BJP alliance, the political stakes have surged.

Here’s a full breakdown of what the IRCTC scam case is, what the court said, and what comes next.

What’s The IRCTC Scam Case?

The case revolves around allegations of corruption in awarding contracts for two hotels run by the Indian Railway Catering and Tourism Corporation (IRCTC), a public sector undertaking established in 1999 to manage catering, ticketing, and tourism services for Indian Railways.

According to the Central Bureau of Investigation (CBI), between 2004 and 2009, when Lalu Prasad Yadav was Union Railways Minister in the UPA government, two IRCTC hotels, BNR Ranchi and BNR Puri, were leased to a private company named Sujata Hotels. The firm was owned by brothers Vijay and Vinay Kochhar.

The CBI alleges that the tender process was manipulated to benefit Sujata Hotels. Specifically, the eligibility criteria were allegedly altered to favour the company, and the tender timeline was influenced. In return for awarding these contracts, Lalu Prasad Yadav and his family are alleged to have received three acres of prime land in Patna at prices significantly below market value.

The land was initially transferred to a firm called Delight Marketing Company, which was later renamed Lara Projects LLP. Investigators claim this firm was controlled by associates of the Yadav family and that effective ownership was gradually transferred to Rabri Devi and Tejashwi Yadav between 2010 and 2014.

The CBI maintains that this was a classic quid pro quo arrangement—public contracts in exchange for undervalued land. The agency registered a First Information Report (FIR) in July 2017 and carried out raids at multiple locations in Patna, Ranchi, Delhi, and Gurugram linked to the Yadavs. A chargesheet was filed in 2018 against 14 individuals, including the Kochhar brothers, Lalu Yadav, Rabri Devi, Tejashwi Yadav, and former IRCTC MD P.K. Goel.

‘You Abused Your Position’: What The Delhi Court Said While Framing Charges

On Monday, Special Judge Vishal Gogne at the Rouse Avenue Court in Delhi framed charges against all 14 accused under relevant provisions of the Indian Penal Code (IPC) and the Prevention of Corruption Act.

Lalu Prasad Yadav was charged with criminal conspiracy (Section 120B), cheating (Section 420), and criminal misconduct by a public servant under the anti-corruption law. Rabri Devi and Tejashwi Yadav were charged with conspiracy and cheating.

Reading out the charges, Judge Gogne said: “You engaged in conspiracy, you abused your position as public servant, influenced the tender… eligibility conditions of tender were manipulated, you conspired for undervalued purchase of land parcels and conspired with other accused for subsequent transfer of effective control over these land parcels."

The court further observed that “Lalu Prasad intervened to influence the pace… there were material modifications in the tender process." It noted that “the land parcels were undervalued and given to Rabri Devi and Lalu Prasad. This caused wrongful loss to the public exchequer."

In its framing order, the court emphasised that there existed a prima facie case. “The conspiracy is sublime, but is not hidden from the court’s view," it said. The court concluded that the fraud alleged must be tried as cheating.

Special Public Prosecutor D.P. Singh, appearing for the CBI, argued that there was clear evidence of corruption and conspiracy and that the charges were backed by documentary proof and witness testimonies.

What Happens Next

With the charges formally framed, the IRCTC case has now entered the trial phase. All accused have pleaded not guilty and said they will face trial. As per legal procedure, the next steps will involve the court examining evidence from both the prosecution and defence, including witness testimonies.

Judge Gogne is expected to begin day-to-day trial proceedings later this month at the Rouse Avenue Court in Delhi.

For the Yadav family, this means balancing courtroom appearances with political campaigning. The timing of the charges, just weeks ahead of the Bihar Assembly election, has fuelled political commentary. The RJD has accused the BJP-led Centre of targeting opposition leaders, while Lalu and his family have maintained that the case is “politically motivated" and that the contracts were awarded transparently.

The charges carry serious legal consequences. Under Section 420 (cheating) and Section 120B (criminal conspiracy) of the IPC, convicted individuals can face imprisonment of up to seven years or more, depending on judicial findings. Charges under the Prevention of Corruption Act, especially for a public servant, can further add to the sentence, including life imprisonment in severe cases.

Not Just IRCTC: The Long Trail Of Corruption Allegations Against Lalu Yadav

The IRCTC scam is not the only corruption case Lalu Prasad Yadav is entangled in. He has previously been convicted in multiple cases linked to the infamous fodder scam, which involved fraudulent withdrawals of approximately Rs 950 crore from government treasuries in undivided Bihar during the 1990s. Though he is currently out on bail in those cases, the convictions continue to haunt his political career.

In addition, Lalu and his family are also being investigated in another high-profile case known as the “land-for-jobs" scam. This case, also probed by the CBI and Enforcement Directorate, pertains to alleged land transfers in exchange for Group-D appointments in Indian Railways during Lalu’s tenure as Minister.

The case involves allegations that land was acquired at cheap rates in return for appointments in the Central Railways, between 2004 and 2009. Charges are yet to be framed in that matter, but it adds another layer to the legal challenges facing the RJD patriarch and his family.

Karishma Jain

Karishma Jain, Chief Sub Editor at News18.com, writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @kar...Read More

Karishma Jain, Chief Sub Editor at News18.com, writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @kar...

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