How Sushil Modi’s Allegations on Lalu’s Benami Property Began

Sushil Modi was a petitioner of the fodder scam which led to Lalu’s disqualification from the Parliament.

Lalu Prasad Yadav (left) and Sushil Kumar Modi (right). (Photo: The Quint)

Former Deputy Chief Minister of Patna and BJP member Sushil Kumar Modi has been firing cannons after cannons of accusation at RJD supremo Lalu Prasad Yadav and his family over accumulating crores through corrupt means.

The Income Tax department, on 16 May, conducted raids and surveys on at least 22 locations in Delhi and adjoining areas on charges of alleged benami deals worth Rs 1,000 crores.

This is how the allegations started:

Starting With Patna Zoo

Modi, who was a petitioner of the fodder scam which led to Lalu’s disqualification from the Parliament, alleged that the Patna Zoo, under the charge of Lalu Prasad’s son and current minister Tej Pratap Yadav, awarded a Rs 90 lakh soil contract to a company that ferried soil from a proposed mall site. He alleged that the site was owned by him and his mother, former Patna CM Rabri Devi.

According to Hindustan Times, he furbished evidence to prove that the site was handed to Lalu’s family in 2014, and the project was called LARA, which was an acronym for Lalu and Rabri.

Also Read: Deliberately Dragged Into the Mud: Lalu on Soil Scam Accusation

As for Benami Properties...

On 18 April, came the second disclosure on AK Infosystem Pvt Ltd, a company formed by liquor baron Om Prakash Katyal, when Lalu was the Railway Minister in 2016. Modi presented evidence to prove that AK Infosystem acquired several benami properties for Lalu’s family.

In 2014, the Katyal’s family distanced themselves from the company, leaving Rabri Devi will 85 percent shares and Tejaswi with 15 percent. Modi claimed that Lalu is currently the owner of Rs 1,000 crore worth benami property, and asked CM Nitish Kumar to probe into this.

...And Sketchy Shell Companies

In May, Sushil Modi alleged that Lalu’s family earned crores through several shell companies such as Delight Marketing Pvt Ltd, AK Infosystems Pvt Ltd and AB Exports Pvt Ltd. He said Lalu’s daughter Misa had laundered money through a shell company to buy a farmhouse in Delhi (which is valued at Rs 50 crore), at a throwaway price.

Vivek Nagpal, a hawala operator against whom the CBI and the ED have lodged cases, handed over his firm KHK Holding Pvt Ltd to Lalu Prasad's family in 2014. The firm bought residential property worth Rs 42.33 lakhs at Sainik farms, and Misa became the owner of the firm in 2014. He said with a meagre investment of Rs 1 lakh in the firm, Misa became the owner of Rs 50 crore.

Modi also question how Misa and her husband used Lalu’s official Bungalow at 25 Tughlaq Road for commercial use.

Firing further allegations, he said the Mumbai-based AB Exports Pvt Ltd was used to acquire a Rs 115 worth residential property at Delhi’s New Friends Colony which was also the address of companies owned by former union corporate affairs minister PC Gupta’s family members.

Hindustan Times reported that Modi also questioned by five Mumbai-based gold and diamond traders, who provide interest-free loans of Rs 1 crores each to the non-functional AB Exports Pvt Ltd to acquire properties, which would also be handed to Lalu’s family.