A court in Delhi has authorized the initiation of money laundering charges against prominent figures of the Rashtriya Janata Dal (RJD), including party chief Lalu Prasad Yadav, his wife Rabri Devi, and their son Tejashwi Yadav. Special Judge Vishal Gogne, presiding over the Rouse Avenue Court, indicated that there is substantial suspicion regarding the involvement of the accused under the Prevention of Money Laundering Act in the LARA Projects-IRCTC case.
What is the IRCTC hotel lease and Patna land case?
The court referred to a Patna property allegedly transferred to them while Lalu Prasad was Union railway minister. 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. The court proceeded against nine accused in the money laundering case. Seven others were discharged. Rabri Devi and Tejashwi were also charged with offences including conspiracy and cheating. The agency has also alleged that the property moved through a company associated with Sarla Gupta, wife of Prem Chand Gupta.
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.
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 judge said Rabri Devi and Tejashwi continue to enjoy the “tainted land”, which was allegedly transferred to them at the behest of Lalu Prasad. 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, according to the CBI case.
