The Delhi High Court has sought a response from the Enforcement Directorate to former Railway Minister Lalu Prasad Yadav’s petition challenging the framing of money laundering charges in the IRCTC hotel case. Justice Sachin Datta issued notice to the agency, with the matter listed for December 3. Yadav has argued that the trial court’s September 10 order is legally unsustainable and that he was not involved in handling alleged proceeds of crime. The court has yet to decide the petition.

Delhi High Court Seeks ED Reply on Lalu Yadav IRCTC Hotel Scam Plea

The Delhi High Court has directed the Enforcement Directorate to file a reply to Lalu Prasad Yadav's plea challenging the money laundering charges in the alleged IRCTC hotel scam. The next hearing is on Dec. 3.

The Lalu Yadav IRCTC hotel scam case returned to the headlines on Thursday as the Delhi High Court asked the Enforcement Directorate (ED) to reply to a plea filed by former railroad minister Lalu Prasad Yadav challenging a trial court order framing money laundering charges against him.

Justice Sachin Datta issued notice to the federal agency on Yadav’s petition challenging the September 10 order. The next hearing will be on December 3 in the High Court, according to the Press Trust of India (PTI).

Lalu Yadav Challenges Money Laundering Charges

Yadav has argued that the trial court had directed framing of money laundering charges only because charges were framed against him in the related case. He says in his petition that he was not involved in any process or activity concerning the alleged proceeds of crime.

The petition also states that the trial court order is legally unsustainable and that Yadav was never called by the ED for investigation. These are the arguments put forth by Yadav and yet to be considered by the court.

The proceedings relate to allegations arising out of the Indian Railway Catering and Tourism Corporation (IRCTC) hotel case pertaining to the award of leases for railroad hotels at Ranchi and Puri.

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Alleged Conspiracy Involving Sujata Hotels

The ED’s money laundering case is based on an FIR by the Central Bureau of Investigation (CBI) alleging a criminal conspiracy between Yadav, Sarla Gupta, owner of Sujata Hotels, and officials of IRCTC.

Sarla Gupta is married to Prem Chand Gupta, a close aide of Yadav and a Rajya Sabha member of Rashtriya Janata Dal (RJD). The alleged conspiracy is said to have sought an undue financial advantage to Yadav and others in the years 2004 to 2014.

The trial court on September 10 ordered framing of charges of money laundering against Yadav, his wife Rabri Devi, their son Tejashwi Yadav and six others.

The trial judge said the ED's allegations regarding the period between 2005 and 2014 showed that the railroad officials under Yadav's leadership had manipulated a tender to award the hotel leases to Sujata Hotels, PTI reported.

During the proceedings, the trial court acquitted seven of the 16 accused.

A separate CBI probe is on into a corruption case related to the alleged hotel scam. The trial court had framed charges of corruption against Yadav and 11 others in that case in October 2025.

The money laundering and related corruption case involves separate legal allegations, but both cases relate to the hotel lease arrangements. The charges are allegations to be tested in the crucible of the judicial process.

The notice by the  Delhi High Court does not decide the merits of Yadav’s petition or whether the money laundering charges should be dealt with. It is awaiting a reply from the ED for its further consideration.

As the legal challenge moves forward, Sprouts News reports that the next hearing on December 3 is expected to bring the parties’ positions before the High Court.