The Delhi High Court on Thursday issued notice to the Enforcement Directorate (ED) on a petition filed by former railway minister Lalu Prasad Yadav challenging the trial court’s decision to frame money laundering charges against him in the alleged IRCTC hotel scam.
Justice Sachin Datta sought the agency’s response to Yadav’s challenge against the September 10 order and scheduled the next hearing for December 3.
Yadav has questioned the legal basis of the trial court’s decision, arguing that the framing of charges in the underlying corruption case could not, by itself, justify proceedings against him for money laundering.
According to his petition, there was no material establishing his involvement in any activity or process connected with the alleged proceeds of crime. He maintained that the trial court had proceeded against him solely because charges had been framed in the scheduled offence.
The former railway minister also pointed out that the ED had never summoned him during its investigation. Citing this circumstance, he argued that the order was legally unsustainable and suffered from serious defects.
Trial Court Had Ordered Charges Against Nine Accused
On September 10, the trial court directed the framing of money laundering charges against Yadav, his wife Rabri Devi, their son Tejashwi Yadav and six other accused. Seven of the 16 persons facing proceedings were discharged.
The trial court had observed that the ED’s allegations concerning the period from 2005 to 2014 strongly suggested manipulation of the tender process by railway officials under Yadav’s stewardship.
The allegations concerned the award of leases for railway hotels in Ranchi and Puri to Sujata Hotels.
Origins of the Money Laundering Case
The ED proceedings stem from a First Information Report registered by the Central Bureau of Investigation (CBI).
The CBI alleged that between 2004 and 2014, Yadav conspired with the owner of Sujata Hotels, Sarla Gupta, and officials of the Indian Railway Catering and Tourism Corporation (IRCTC) to obtain financial benefits for himself and others.
Sarla Gupta is the wife of Prem Chand Gupta, a close associate of Yadav and a Rashtriya Janata Dal (RJD) member of the Rajya Sabha.
In the connected CBI case, the trial court had already framed corruption charges against Yadav and 11 others in October last year.
The High Court will take up Yadav’s challenge to the money laundering charges on December 3.
