President Droupadi Murmu has granted sanction to prosecute Lalu Prasad Yadav, the former Union Railway Minister and chief of the RJD (Rashtriya Janata Dal), in connection with the alleged land-for-jobs scam. Top sources confirmed the President's decision on Thursday.
The approval for prosecution was granted under Section 197(1) of the Criminal Procedure Code, now Section 218 of the Bharatiya Nyaya Sanhita, 2023. This paves the way for further investigation and potential legal proceedings against Yadav in this long-standing case.
The Enforcement Directorate (ED) initiated its investigation based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI). The core allegation is that during his tenure as Railway Minister from 2004 to 2009, Lalu Prasad Yadav engaged in corrupt practices. Specifically, he is accused of taking land parcels in exchange for appointments as Group D substitutes in the Indian Railways. These land parcels were allegedly transferred to Yadav's family members or associates. The case was initially registered on May 18, 2022, against Yadav, his wife, two daughters, unidentified public officials, and private individuals.
In a related matter, the Supreme Court on Monday, April 7, 2025, declined to hear a plea from the ED against the bail granted to Amit Katyal, a businessman and close aide of Lalu Prasad Yadav, in connection with the same land-for-jobs scam. A bench of Justices M.M. Sundresh and Rajesh Bindal stated it was not inclined to interfere with the Delhi High Court order. The High Court had previously criticized the ED's "pick and choose" policy in granting bail to Katyal. The court noted that despite Katyal joining the investigation, he was detained at Indira Gandhi International Airport just before boarding a flight to Ranchi and that no other accused had been arrested in the case, even though they were alleged to be the main beneficiaries. The court also pointed out Katyal's role appeared to be less significant, and he was cooperating with the probe and posed no flight risk. Katyal was arrested by the ED on November 10, 2023, under the Prevention of Money Laundering Act (PMLA) and was granted bail on a personal bond of Rs 10 lakh.
The ED had claimed that Katyal was the director of A K Infosystems Private Limited, which allegedly acquired land from candidates on behalf of Yadav. The ED maintained that Katyal played an active role in assisting Lalu Yadav and his family in handling the proceeds from alleged corrupt practices during Yadav's time as railway minister.
During the Supreme Court hearing regarding Katyal's bail, the bench questioned the ED's approach, stating, "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?". Additional Solicitor General S.V. Raju, representing the ED, argued that the High Court's bail order was flawed and should be overturned.
The alleged scam involves irregularities in Group D appointments made in the West Central Zone of the Indian Railways, based in Jabalpur, Madhya Pradesh, between 2004 and 2009, when Yadav was the railway minister. It is alleged that several candidates provided land parcels to Yadav or his associates in exchange for these positions.
