ED concludes arguments on charges in ‘land-for-jobs’ money laundering case

The Enforcement Directorate has concluded its arguments before a Delhi court on the issue of framing charges in a money laundering case linked to the alleged “land-for-jobs” scam involving Lalu Prasad Yadav and members of his family.

During the hearing at the Rouse Avenue Court, the agency told the court that evidence gathered during the investigation established grounds for framing charges under the Prevention of Money Laundering Act (PMLA).

According to the agency, proceeds of crime generated from alleged bribes in the form of land parcels were used by the family of the Rashtriya Janata Dal leader to acquire immovable properties.

The ED further alleged that shares of a private firm, AK Infosystems Pvt Ltd, were initially acquired as part of the alleged conspiracy and that the company was later taken over by members of Yadav’s family.

Investigators claimed that several land parcels were transferred in exchange for jobs in the railways and were often registered in the name of the company rather than directly under the names of the family members.

The company is owned by Amit Katyal, who is considered a close associate of Yadav and his son Tejashwi Yadav.

The agency also alleged that in 2014 the company’s rights and assets were transferred to former Bihar chief minister Rabri Devi and her elder daughter, Misa Bharti, who is a member of the Rajya Sabha.

The court is currently hearing arguments on whether charges should be framed against several accused in the case, including Yadav, Rabri Devi, Tejashwi Yadav and other family members.

After the prosecution concluded its submissions, the court granted time for the defence to present its arguments. Defence submissions are scheduled to begin on 23 March and are expected to continue until 30 March.

The case centres on allegations that during Yadav’s tenure as Union railway minister between 2004 and 2009, candidates were appointed to Group-D posts in the Indian Railways in return for land parcels transferred to his family members or entities allegedly linked to them.

Parallel investigations into the case are being conducted by the ED and the Central Bureau of Investigation.

In a related development, the Delhi High Court recently issued notice to the CBI on a petition filed by Yadav challenging a trial court order directing that charges be framed against him in the underlying corruption case connected to the alleged scam.

Earlier this year, Special Judge Vishal Gogne of the Rouse Avenue Court had said there was a prima facie case of corruption, cheating and criminal conspiracy against Yadav and several members of his family.

The trial court had observed that the accused appeared to have acted as part of a “criminal enterprise”, allegedly using public employment in the railways to obtain land parcels at prices significantly below market value.

Yadav and his family have denied the allegations and pleaded not guilty, stating that they will contest the charges during the trial.