Delhi Court Frames Money Laundering Charges Against Lalu Prasad and Family

A Delhi court on September 10, 2026, ordered the framing of money laundering charges against former Union Railway Minister Lalu Prasad Yadav, his wife Rabri Devi, and their son Tejashwi Prasad Yadav. The order, delivered by Special Judge Vishal Gogne at the Rouse Avenue Courts, marks a significant procedural development in the long-running investigation into the alleged Indian Railway Catering and Tourism Corporation (IRCTC) scam. The case, which has spanned several years, centers on allegations of corruption and financial irregularities during the tenure of the RJD patriarch as Railway Minister between 2004 and 2009.

The court's decision to proceed with charges under the Prevention of Money Laundering Act (PMLA) follows an earlier October 2025 order in which the same court framed charges of corruption, criminal conspiracy, and cheating against the accused. In his latest ruling, Judge Gogne observed that there was a strong suspicion of money laundering offenses involving seven individuals. The court explicitly rejected arguments from the defense counsel that the investigation was driven by political vendetta, stating that the nature, timing, and course of the probe did not support such claims.

The legal proceedings against the Yadav family originated from a Central Bureau of Investigation (CBI) case, which later prompted the Enforcement Directorate (ED) to register a separate PMLA case. The CBI has alleged that during his time as Railway Minister, Lalu Prasad Yadav and his family members accepted prime land and shares as bribes in exchange for awarding contracts to a private firm. The core of the allegation involves the leasing of two IRCTC hotels in Ranchi and Puri to a company identified as Sujata Hotels through a process that investigators claim was manipulated.

According to the prosecution, the alleged quid pro quo involved the transfer of land worth crores to a company linked to Rabri Devi and Tejashwi Yadav at a fraction of its market value. The court has now formally included these allegations within the scope of the money laundering trial. In addition to the primary family members, the court framed charges against several other entities and individuals, including Lara Projects, Sarla Gupta, Prem Chand Gupta, Sujata Hotels, Vinay Kochhar, and Vijay Kochhar.

While the court moved forward with charges against the primary accused, it simultaneously granted relief to several other individuals named in the investigation. Special Judge Vishal Gogne ordered the discharge of seven people, effectively removing them from the list of those facing trial in this specific money laundering case. Those discharged include Rahul Yadav, the son-in-law of Lalu Prasad Yadav, as well as Gaurav Gupta, Nath Mal Kankarnia, Vijay Tripathi, DN Tulshyan, Rajiv Relan, and Abhishek Finance.

This selective framing of charges highlights the court's assessment of the evidence presented by the Enforcement Directorate against each individual. The discharge of these seven individuals marks a notable shift in the composition of the trial, narrowing the focus of the PMLA proceedings to the core family members and the associated corporate entities. The legal team representing the Yadav family, including advocates Varun Jain, Navin Kumar, Sumit Singh, and Satish Kumar, has consistently maintained that the case lacks evidentiary support and is politically motivated.

The RJD leadership has remained steadfast in its defense, characterizing the entire legal process as an attempt to target the family through state machinery. Throughout the investigation, the accused have questioned the validity of the probe, asserting that there is no evidence to substantiate the claims of corruption or money laundering. This defense strategy has been a consistent theme since the initial CBI FIR was registered, with the family frequently citing the timing of the investigations as evidence of political pressure.

Despite these assertions, the court's recent order indicates that the judicial process has found sufficient grounds to proceed to trial. By ruling that the investigation does not appear to be inspired by political vendetta, the court has cleared a significant hurdle for the prosecution. This judicial stance provides the Enforcement Directorate with the mandate to move forward with the trial, setting the stage for a protracted legal battle that will examine the financial transactions and land transfers that occurred nearly two decades ago.

The framing of charges serves as a formal commencement of the trial phase under the Prevention of Money Laundering Act. With the charges now officially on record, the court will move toward the evidentiary stage, where the prosecution must prove its case beyond a reasonable doubt. The defense is expected to continue its challenge against the proceedings, potentially seeking further relief through higher judicial forums.

Separately, the legal challenges surrounding the initial CBI corruption case remain active. Earlier in January 2026, the Delhi High Court was scheduled to hear a petition filed by Lalu Prasad Yadav challenging the October 2025 order that framed charges of cheating and criminal conspiracy. The intersection of these two parallel cases, one focused on the underlying corruption allegations and the other on the subsequent money laundering charges, will define the legal trajectory for the accused in the coming months. The court has yet to set a specific date for the commencement of the trial proceedings following the latest order.