The Delhi High Court on Monday refused to grant a stay on the ongoing trial against Rashtriya Janata Dal (RJD) leader Lalu Prasad Yadav, while also directing the Central Bureau of Investigation (CBI) to file its response to his plea challenging the framing of charges against him and others in the IRCTC scam case. The court has scheduled a further hearing for January 14 to consider the stay application after reviewing the agency’s response.

During the brief hearing, Justice Swarana Kanta Sharma noted that it could not pass an order on the stay petition without first hearing the CBI’s reply and examining the trial court record of the case. Accordingly, the court issued a notice to the probe agency and listed the matter for the next hearing.

Senior advocates Kapil Sibal and Maninder Singh, representing Lalu Prasad Yadav, informed the court that they were seeking a stay on the proceedings in the trial court, pointing out that two witnesses had already been examined within a month. Justice Sharma, while noting the delay in approaching the High Court, observed, “Let them file a reply. You should have come earlier, you didn’t come. The trial court order was passed earlier.”

Background of the IRCTC Scam Case

The trial court had on October 13, 2025, framed charges against Lalu Prasad Yadav, his wife Rabri Devi, his son Tejashwi Prasad Yadav, and 11 other individuals in connection with alleged irregularities in granting operational contracts of two Indian Railway Catering and Tourism Corporation (IRCTC) hotels to a private firm.

According to the CBI chargesheet, a conspiracy was allegedly hatched between 2004 and 2014 in which BNR hotels of the Indian Railways, located in Puri and Ranchi, were first transferred to IRCTC and subsequently leased out to Sujata Hotels Private Limited, a private entity based in Patna, Bihar, for operations, maintenance, and upkeep. The agency claimed that the tender process had been manipulated and rigged to favour Sujata Hotels.

The chargesheet also included group general managers of IRCTC, V K Asthana and R K Goyal, as well as Vijay Kochhar and Vinay Kochhar, directors of Sujata Hotels and owners of Chanakya Hotel. In addition, the firms Delight Marketing Company (now Lara Projects LLP) and Sujata Hotels Private Limited were also named as accused entities.

The trial court, in its observations, noted that the land and share transactions in the case appeared to be “possibly an instance of crony capitalism fostered in the garb of eliciting private participation in the Railways’ hotels at Ranchi and Puri.”

Charges Framed

The trial court framed charges against the accused under various provisions of the Indian Penal Code (IPC) and the Prevention of Corruption (PC) Act:

• Lalu Prasad Yadav, Rabri Devi, Tejashwi Prasad Yadav, Vijay Kochhar, Vinay Kochhar, M/s Lara Projects LLP, Sarla Gupta, and Prem Chand Gupta were charged under IPC Section 420 for cheating.
• All 14 accused were charged under IPC Section 120B for criminal conspiracy read with Section 420 IPC.
• Charges under Section 13(2) read with 13(1)(d)(ii) and (iii) of the Prevention of Corruption Act were framed against Lalu Prasad and several other accused for alleged criminal misconduct by public servants and abuse of position to obtain undue favors.

The maximum punishment under the PC Act is 10 years, while under the IPC for cheating, it is 7 years.

Lalu Prasad’s Challenge

Lalu Prasad Yadav, a former Union Railway Minister, has approached the Delhi High Court challenging the trial court’s order of framing charges, seeking a stay on the proceedings. His petition contends that the trial court’s decision was premature and that the proceedings should be paused until the High Court decides on the matter.

The CBI is expected to file a detailed response to the plea before the next hearing. The High Court will then examine whether there are grounds to grant a temporary suspension of trial proceedings against Lalu Yadav and other accused, keeping in mind the gravity of the charges and the need to ensure that justice is served.

Scope of the Allegations

The IRCTC scam case revolves around alleged irregularities in the leasing of Railway hotels to a private operator, which the agency contends involved a conspiracy spanning a decade. The alleged manipulation of tender conditions and selective allotment of operational contracts has been described as favouring private interests over public accountability.

The case is considered significant not only because of the high-profile nature of the accused, including a former Union Minister and his family, but also because it highlights alleged corruption in the allocation of government propertiesintended for public services.

The framing of charges marks a critical stage in the trial, as it formally identifies the offences alleged against the accused and sets the stage for the adduction of evidence and witness examination in the trial court. It is also a key point at which the accused may challenge procedural or substantive aspects of the prosecution’s case.

Next Steps

The Delhi High Court has set January 14 for further hearing, by which time the CBI is expected to file its reply to Lalu Prasad’s plea seeking a stay on the trial. At this stage, the court will consider the arguments on whether the trial should continue or be temporarily halted pending resolution of procedural challenges.

In the meantime, the trial in the IRCTC scam case continues in the lower court, with witness examination and other procedural steps moving forward. Senior advocates representing Lalu Yadav have highlighted the need for judicial scrutiny of the framing order, arguing that it may have prejudicial implications for the accused if the trial proceeds without High Court review.

The case has attracted national attention given the involvement of prominent political figures, the allegations of cronyism and corruption, and the potential impact on public perception of government transparency. Observers note that the High Court’s ruling on the stay application will be closely watched as a measure of the judiciary’s approach to high-profile corruption cases.

The next hearing is expected to clarify whether the trial can continue uninterrupted or if the High Court will intervene temporarily, setting the course for the proceedings against Lalu Prasad Yadav, his family, and other accused in one of India’s significant political corruption cases in recent years.