The scam involving Lalu Prasad Yadav, Rabri Devi, and Tejashwi Yadav is officially known as the IRCTC Hotels Tender Scam, though it is often colloquially referred to as a “land-for-hotels” scam. It is distinct from the “Land-for-Jobs” scam, though both allege corruption during Lalu Yadav’s tenure as Union Railway Minister.
Here are the full details of the allegations and the recent developments:
1. The Core Allegation (The Quid Pro Quo)
The case is being investigated by the Central Bureau of Investigation (CBI) and centers on allegations of a quid pro quo (something for something) that occurred when Lalu Prasad Yadav was the Union Railway Minister (2004–2009).
| Component | Details |
| The Favour | Lalu Yadav allegedly manipulated the tender process to award the operational contracts for two Indian Railway Catering and Tourism Corporation (IRCTC) hotels—the BNR Hotels in Ranchi and Puri—to a private firm. |
| The Private Firm | The contracts were allegedly leased to Sujata Hotel, owned by brothers Vijay and Vinay Kochar. |
| The Bribe/Quid Pro Quo | In return for the lucrative contracts, the Kochar brothers allegedly transferred a valuable plot of prime land in Patna (approximately three acres) to a company linked to the Yadav family, named Delight Marketing Company Private Limited (DMCPL), which was later renamed LARA Projects LLP. |
| The Undervaluation | The CBI alleges the land was transferred to the Yadav family at a fraction of its market value. Furthermore, the effective control of this land was transferred to Rabri Devi and Tejashwi Yadav through the subsequent transfer of shares in the linked company at highly undervalued rates. |
2. Roles of the Accused
| Accused | Alleged Role | Charges Framed by Court (IPC/PC Act) |
| Lalu Prasad Yadav | The primary conspirator and “fountainhead” of the conspiracy; allegedly abused his position as a public servant (Railway Minister) to influence the tender conditions and facilitate the land transfer. | Criminal Conspiracy, Cheating, and Criminal Misconduct by a Public Servant (under Prevention of Corruption Act). |
| Rabri Devi | Alleged participant in the criminal conspiracy; received effective control over the undervalued land through the transfer of company shares. | Criminal Conspiracy and Cheating. |
| Tejashwi Yadav | Alleged participant in the criminal conspiracy; received effective control over the undervalued land through the transfer of company shares. | Criminal Conspiracy and Cheating. |
3. Latest Court Development
In October 2025, a significant legal development occurred when the Delhi Rouse Avenue Court ordered the formal framing of charges against Lalu Prasad Yadav, Rabri Devi, Tejashwi Yadav, and several other individuals and firms.
- Court’s Observation: The Special Judge observed that there was “grave suspicion” that a conspiracy was hatched. The court noted that Lalu Yadav’s “institutional awareness and possible intervention” acted as the “glue” binding the conspiracy, and the land transfer to his family by “commercial players” suggested an “instance of crony capitalism.”
- Next Step: Since all the accused, including the Yadav family, pleaded “not guilty”, the case will now proceed to a full trial, where the court will begin examining evidence and witness testimonies.
