IRCTC scam: Delhi court grants bail to Lalu

India

28 Jan 2019

IRCTC scam: Lalu Prasad, wife, son granted bail by Delhi-Court

A Delhi court today granted bail to RJD chief Lalu Prasad, his wife Rabri Devi and son Tejashwi Yadav in a money laundering case related to the Indian Railway Catering and Tourism Corporation (IRCTC) scam.

Special Judge Arun Bhardwaj granted relief to each of the accused persons on a personal bond of Rs. 1L and surety of like amounts.

Their interim bail ended today.

The court had on January 19 extended their interim bail

The court had on January 19 extended the interim bail granted to the them. The case relates to alleged money laundering in granting the operational contract of two IRCTC hotels to a private firm. The court had earlier granted bail to them in the case.

Details

A conspiracy was hatched between 2004 and 2014, says CBI

A conspiracy was hatched between 2004 and 2014, says CBI

According to the charge sheet filed by the Central Bureau of Investigation (CBI), between 2004 and 2014, a conspiracy was hatched in pursuance of which BNR hotels of the Indian Railways, located in Puri and Ranchi, were first transferred to IRCTC.

Later, for its operations, maintenance and upkeep, it was given on lease to Sujata Hotels Private Limited, which is based in Patna, Bihar.

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Tender process was rigged, manipulated to help private party

It is alleged that the tender process was rigged and manipulated and the conditions were tweaked to help the private party - Sujata Hotels. Based on the CBI case, the ED had also lodged a case of money laundering against Prasad, Devi, Yadav and others.

Others

The then group general managers of IRCTC also named

Among others named in the charge sheet filed by CBI are - then group general managers of IRCTC V K Asthana and R K Goyal and Vijay Kochhar, Vinay Kochhar, both directors of Sujata Hotels and owners of Chanakya Hotel.

Delight Marketing Company, now known as Lara Projects, and Sujata Hotels Private Limited have also been named as accused firms in the charge sheet.

Timeline

In 2001, railways catering-services decided to be given to IRCTC

In 2001, railways catering-services decided to be given to IRCTC

In 2001, it was decided to handover the management of catering services of the Indian Railways, including of its hotels, to the IRCTC.

Two such hotels, BNR Hotels in Ranchi and Puri, were also identified and a MoU was signed between the railways and the IRCTC on March 19, 2004.

Lalu Prasad was the then railway minister when an FIR was lodged by CBI.

Prasad entered into criminal conspiracy with Sujata Hotels owner: FIR

The FIR stated Prasad entered into criminal conspiracy with the owner of Sujata Hotels, Sarla Gupta, wife of his close associate Prem Chand Gupta, a Rashtriya Janata Dal MP in Rajya Sabha, and IRCTC officials for "undue pecuniary advantage to himself and others".

FIR

Prasad was aware of the entire process, alleges CBI

CBI also alleged that BNR hotels were transferred to Sujata Hotels through a "rigged and manipulated" tender process managed by P K Goyal, the then IRCTC MD.

The CBI inquiry shows that the railways sought bids for developing, operating and maintaining Rail Ratna Hotels on September 16, 2006.

The probe agency has alleged that Prasad was aware about the whole process.

Tendering

IRCTC had no records of bidders other than Sujata Hotels

IRCTC had no records of bidders other than Sujata Hotels

Prasad also kept track of the tender proceedings.

It surfaced that while over 15 bid documents were received for both the hotels, IRCTC had no records of bidders other than Sujata Hotels.

It was also alleged that with an intention to render undue pecuniary gains to Sujata Hotels, the bid of another hotel was deliberately and unreasonably given low marks under technical evaluation.

Career

Prasad became Bihar CM in 1990, had to resign later

Prasad became Bihar's CM in 1990, but had to resign in 1997 following corruption charges in the multi-crore rupees fodder scam.

From 1997 to 2005 his wife Devi was the chief minister and was replaced by JD(U) president Nitish Kumar.

Prasad also served as railway minister from 2004 to 2009.

The RJD again came back to power after forging an alliance with Kumar-led JD(U).

Split

Nitish Kumar parted ways with RJD July last year

In 2015, and Tejashwi Yadav became the deputy chief minister. However, Kumar parted ways from the RJD in July last year.

The RJD chief has been serving sentence in Ranchi jail since December 2017 following his conviction in fodder scam cases.

Earlier this month, the Jharkhand High court had rejected the bail plea of Prasad in three fodder scam cases.

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IRCTC

Lalu Prasad Yadav

Lalu Prasad Yadav Family

Lalu Prasad Yadav Son

Scam

Arun Bhardwaj

Bihar CM

BNR Hotels

Central Bureau

Chanakya Hotel

Delhi

Delight Marketing Company

ED

FIR

Indian Railway Catering

Indian Railway Catering and Tourism Corporation

Indian Railways

IRCTC MD

IRCTC V K Asthana

Jharkhand High

Kumar-led JD

Lalu Prasad

Lara Projects

MoU

Nitish Kumar

P K Goyal

Prem Chand Gupta

R K Goyal

Rabri Devi

Rail Ratna Hotels

Rajya Sabha

Rashtriya Janata Dal

Rashtriya Janata Dal MP

RJD July

Sarla Gupta

Special Judge Arun Bhardwaj

Sujata Hotels

Sujata Hotels Private Limited

Tejashwi Yadav

Tourism Corporation

Vijay Kochhar

Vinay Kochhar

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