President clears prosecution of Lalu Prasad in land-for-jobs case

President Droupadi Murmu has granted sanction to prosecute Rashtriya Janata Dal (RJD) chief and former Bihar chief minister Lalu Prasad in the money laundering case linked to the alleged land-for-jobs scam in the railways dating back to 2004-09 when Prasad was the railway minister, officials aware of the development said on Thursday.

The RJD, which is the primary opposition party in Bihar, tried to play down the development, with senior party leader and Rajya Sabha member Sanjay Yadav terming the sanction a “procedural matter”.

“The prosecution sanction has been accorded against Lalu Prasad, former railway minister, by the President as mandated under Section 197(1) of CrPC (Section 218 of BNSS, 2023) in money laundering case of land-for-jobs in railways,” an official said, requesting anonymity.

The Enforcement Directorate (ED) filed a case under the Prevention of Money Laundering Act (PMLA) against Prasad and his family members and aides based on an FIR registered by the Central Bureau of Investigation (CBI) over malpractices in railway recruitment during 2004-09, when the RJD chief was the railway minister in the UPA-1 government.

In August last year, ED filed a supplementary charge sheet before a special court in Delhi, naming the 76-year-old former Bihar chief minister, his MLA son and former deputy CM Tejashwi Prasad Yadav and eight others in the PMLA case.

Earlier in January 2024, ED had filed its first chargesheet against an alleged associate of the Prasad family, Amit Katyal, and other family members of the RJD chief, including his wife and former Bihar CM Rabri Devi, MP daughter Misa Bharti, another daughter Hema Yadav and two associated companies — A K Infosystems Private Limited and A B Exports Pvt Ltd.

The special PMLA court in Delhi has taken cognisance of both the prosecution complaints (ED’s equivalent of charge sheets).

The CBI FIR has alleged that Prasad, the then Union railway minister, indulged in “corruption” in the appointment of Group D substitutes in the Indian Railways during 2004-2009. The candidates or their family members were allegedly told to transfer land as a bribe in return for jobs in the railways, according to the FIR.

These land parcels were directly or indirectly registered in the name of the family members of Lalu Prasad. CBI has also filed three charge sheets in this case. Prasad, his wife and Tejashwi Yadav were earlier questioned by CBI while Misa Bharti was examined under the PMLA by ED in March last year.

On April 7, the Supreme Court refused to examine a plea of ED against the bail granted to the RJD chief’s close aide and businessman Amit Katyal in the PMLA case, declining to interfere with the Delhi high court order.

“No big fish. Main persons have not been arrested. Why go on after only small flies? Are you afraid of going after them? Why have you not arrested 11 other accused?” a bench of justices MM Sundresh and Rajesh Bindal said.

Reacting to the prosecution sanction granted by the president, RJD lawmaker Sanjay Yadav said it was done in accordance with the procedure associated with the probe.

“It is a procedural matter. CBI already got a sanction from the President in the case earlier. ED was required to get the sanction from the President in wake of the Supreme Court ruling in the case. That is why, it has been given as per process,” Yadav, who is considered close to Tejashwi Yadav, said.