Challenge to Money Laundering Charges; Next Hearing on December 3
New Delhi, October 29, 2026: The Delhi High Court has sought a response from the Enforcement Directorate (ED) on a petition filed by former Railway Minister Lalu Prasad Yadav in the IRCTC hotel scam case. Yadav has challenged the lower court’s order framing money laundering charges against him. Justice Sachin Datta issued notice to the ED on Thursday. The matter will next be heard on December 3.
Why Has Lalu Yadav Challenged the Order?
In his petition, Lalu Yadav argued that the lower court framed money laundering charges against him merely because charges had been framed in the scheduled offence. He contended that he was not involved in any process or activity connected with the proceeds of the alleged crime. The petition seeks the quashing of the lower court’s order.
The petition also states that the ED never summoned him for questioning during its investigation. However, the High Court is yet to decide on the merits of these arguments.
What Is the IRCTC Hotel Scam Case?
The case is linked to an FIR registered by the Central Bureau of Investigation (CBI). According to the investigating agencies, alleged irregularities took place between 2004 and 2014 in the process of leasing two railway hotels.
The allegations concern the leasing of railway hotels in Ranchi and Puri to Sujata Hotels through an allegedly manipulated tender process. The role of Sarla Gupta, owner of Sujata Hotels, and certain IRCTC officials has also been examined. Sarla Gupta is the wife of Rajya Sabha MP Prem Chand Gupta.
The agencies allege that the purported conspiracy resulted in undue financial benefits for Lalu Yadav and others.
Rabri Devi and Tejashwi Yadav Also Named as Accused
On September 10, the lower court ordered the framing of money laundering charges against Lalu Prasad Yadav, his wife Rabri Devi, his son Tejashwi Yadav and six others. Of the 16 accused in the case, seven were discharged by the lower court.
Separately, in the CBI corruption case, the lower court had framed charges against Lalu Yadav and 11 others in October last year.
The matter is now pending before the Delhi High Court. The court will consider the ED’s response before proceeding further with the hearing. No final decision has yet been delivered on Lalu Yadav’s challenge to the money laundering charges.
