Supreme Court Agrees To Hear Challenge To Bails Granted To RJD Chief Lalu Prasad In Cases Related To The Fodder Scam

A Bench comprising Justices L. Nageswara Rao and B.R. Gavai agreed to hear the pleas assailing the orders of the Jharkhand High Court dated 17.04.2021 in the Dumka treasury matter and 09.10.2020 in the Chaibasa treasury matter.

"Notice. Second case also notice."

Additional Solicitor General, SV Raju appearing for the State submitted that -

"Two sections have not been considered."

Justice Rao stated that, while allowing the bail applications, the Jharkhand High Court had noted that half of the sentence imposed had already been served by Prasad.

"Court says that they have been following the 50% rule."

Mr. Raju submitted that the rule would not apply in the light of the fact that the sentence was to run consecutively.

"50% rule will not apply because the sentence is consecutive."

Justice Rao asked him -

"What is the cumulative sentence ?"

Mr. Raju responded that it is 14 years.

"What is the period spent?" enquired Justice Rao.

Mr. Raju submitted that at the time when the bail was granted it would have been about one year.

"Period will be less. It would be hardly one year or so when the order was passed."

He added that in case the sentence was to run simultaneously then, because of the application of Section 427 of CrPC, the subsequent sentence would commence only once the first was served.

"Second point is different. If it is not consecutively but simultaneously. Suppose you are convicted in a matter, second matter there is conviction. Then the second sentence will commence when the first gets over. Kindly have a look at 427 of CrPC. There is a recent judgment of Justice MR Shah which has dealt with this point."

On 17.04.2021, the Jharkhand High Court granted bail in the case relating to fraudulent withdrawal of Rs 3.13 crores from Dumka Treasury on the ground that he has served half of his prison term. He was convicted in four fodder scam cases pertaining to fraudulent withdrawal of money from Deoghar, Dumka and Chaibasa treasuries in Jharkhand. In 2019 he was granted bail in the Deoghar treasury matter. He was convicted in two cases for fraudulent withdrawals from the Chaibasa Treasury. He was also granted bail in the Chaibasa Treasury matter, on 09.10.2020, by the Jharkhand High Court on the ground that he had undergone half of the sentence imposed on him.

Prasad was in jail from 23.12.2017, after his conviction in three fodder scam cases. He secured bail in the four cases related to Dumka, Deoghar and Chaibasa treasuries.

The RJD chief has now been convicted and sentenced to five years in prison and a fine of Rs. 60 lakhs by a Special Court in Ranchi, for a fifth fodder scam case pertaining to fraudulent withdrawal of Rs. 139.35 crores from Doranda Treasury.

[Case Title:State of Jharkhand v. Lalu Prasad Yadav]