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What is the IRCTC hotel corruption case involving Lalu Prasad Yadav and family?

The IRCTC hotel corruption case has resurfaced against RJD supremo Lalu Prasad Yadav and his family just ahead of the Bihar assembly elections. 

The case concerns alleged irregularities in the tender process for two IRCTC hotels – BNR Ranchi and BNR Puri, during Lalu’s tenure as Union Railway Minister in the Congress-led UPA government. 

The CBI alleges that the maintenance contracts were transferred to Sujata Hotel, a private firm owned by Vijay and Vinay Kochhar, in exchange for three acres of prime land acquired through a benami company.

Charges framed against the Yadav family

On Monday, the Rouse Avenue Court in Delhi framed charges against Lalu Prasad Yadav, his wife Rabri Devi, and son Tejashwi Yadav, who now leads the RJD. 

Former minister Prem Chand Gupta, officials of IRCTC, and directors of Sujata Hotels were also charged. 

The Yadav family faces charges of criminal conspiracy and cheating under sections 120B and 420 of the IPC, while Lalu is additionally charged with criminal misconduct under section 13(1)(d) of the Prevention of Corruption Act.

CBI’s arguments

The Special Public Prosecutor for the CBI argued that the accused engaged in corruption and conspiracy in allotting the hotel maintenance contracts. 

The CBI presented substantial material to support framing charges, claiming that the tender process was manipulated to benefit private parties.

Defence of Lalu and family

Senior advocate Maninder Singh, representing Lalu and his family, contended that the tender was awarded fairly and that there was no evidence of wrongdoing. 

He urged the court to discharge the accused, citing insufficient material to proceed against them. The court has directed all accused to appear in person on October 13.

Political context


This development comes at a sensitive time, just ahead of the 18th Bihar Assembly elections scheduled for November 6 and 11, with vote counting on November 14, making it a key issue in the state’s political discourse.

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