A Delhi court has postponed the formal framing of money-laundering charges against former Railway Minister Lalu Prasad Yadav, his wife Rabri Devi, son Tejashwi Yadav and other accused in the alleged IRCTC hotel scam case. The proceedings, scheduled for Friday, October 30, 2026, have now been deferred to November 19.
Special Judge Prashant Kumar adjourned the matter after the accused sought additional time. The prosecution did not oppose the requests for adjournment, following which the court fixed the next hearing date.
The judge also clarified that all accused persons must remain present during the next hearing unless they have been granted exemption or protection through an order of a superior court.
Nine Accused Face Money-Laundering Charges
The Enforcement Directorate (ED) had named 16 accused in its money-laundering case connected with the alleged irregularities in the allocation of railway hotel contracts.
On September 10, a predecessor court discharged seven of the accused and directed that charges be framed against the remaining nine.
While passing its earlier order, the court observed that there was a strong suspicion against the accused based on the material placed before it. It also rejected the defence argument that the investigation was driven by political vendetta against Lalu Prasad Yadav.
The court's observations formed part of the proceedings at the stage of considering whether the case should proceed to trial. The allegations have not been established through a final conviction.
What Is the Alleged IRCTC Hotel Scam?
The case relates to the award of contracts for the operation and maintenance of two railway hotels in Ranchi and Puri during the period from 2005 to 2014, when Lalu Prasad Yadav was Railway Minister.
According to the Central Bureau of Investigation (CBI), railway officials allegedly manipulated the tender process to favour Sujata Hotels, whose directors were Vinay Kochhar and Vijay Kochhar.
The agency has alleged that the hotel contracts were awarded in exchange for benefits involving valuable land in Patna.
Investigators claim that the directors of Sujata Hotels transferred prime land to a company called Delight Marketing Company Private Limited (DMCPL), which was allegedly controlled by Prem Chand Gupta and his wife, Sarla Gupta. The land was reportedly transferred at prices significantly below its market value.
The company later became part of the chain of transactions examined by investigators.
ED's Allegations Involving Rabri Devi and Tejashwi Yadav
The Enforcement Directorate has alleged that shares of DMCPL were subsequently transferred to Rabri Devi and Tejashwi Yadav at a nominal price.
According to the agency, the transactions ultimately placed control of the company holding the Patna land with Lara Projects LLP.
The ED's case is that these transfers represented benefits allegedly provided in return for the railway hotel contracts. The agency is examining the financial transactions and the alleged proceeds of crime arising from the arrangement.
The accused have contested the allegations. The court proceedings will determine how the evidence and legal arguments are assessed as the case moves forward.
Separate CBI and ED Proceedings
The alleged IRCTC hotel scam has resulted in proceedings by two central agencies.
The CBI is investigating the alleged corruption and manipulation of the railway tender process. In October 2025, a Delhi court had framed corruption charges against Lalu Prasad Yadav, Rabri Devi, Tejashwi Yadav and other accused in the separate CBI case.
The ED's proceedings focus on alleged money laundering connected with the same underlying transactions. Although the two cases concern related events, they involve separate legal proceedings and charges.
The latest adjournment relates specifically to the formal framing of money-laundering charges in the ED case. It does not amount to a decision on the merits of the allegations.
November 19 Hearing to Determine Next Steps
The matter will return to the Delhi court on November 19, when the proceedings are expected to move forward regarding the framing of charges against the nine accused.
The court's direction requiring the presence of the accused, subject to exemptions or orders from higher courts, will also apply on the next date.
The case remains significant because it involves allegations concerning public procurement, railway property contracts and financial transactions involving a former Union Minister and members of his family.
For businesses and organisations, the case also highlights the importance of transparent tendering, accurate financial records and proper documentation of transactions. Effective financial investigation services can help organisations examine complex financial activities and identify potential irregularities.