SC Upholds Sentence Suspension of RJD Chief Lalu Prasad in Deoghar Fodder Case

New Delhi: Supreme Court on Tuesday refused to interfere with the Jharkhand High Court's order suspending the sentence of RJD chief and former Union railway minister Lalu Prasad in the Deoghar fodder case. A bench of justices MM Sundresh and PB Varale urged the high court to decide Lalu's pending criminal appeal within six months.

The development took place during the hearing of an appeal filed by the Jharkhand government challenging the high court's July 12, 2019, order suspending Lalu's sentence in the Deoghar treasury fodder case.

The bench observed that it is "not inclined to interfere with the order, particularly since seven years have elapsed since then. The appeals are of the year 2018 and therefore it will only be appropriate to request the high court to expedite the hearing".


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Appearing for the state, additional solicitor general SV Raju contended that the high court had granted suspension of the sentence on the erroneous premise that Prasad had completed 50% of his sentence. Raju submitted that two earlier applications seeking suspension of sentence had been rejected and the third was allowed on a factually incorrect basis.

He further submitted that Section 427 of the Code of Criminal Procedure would apply because Prasad was convicted in multiple fodder cases arising from separate trials. When the bench enquired about the status of the pending appeal (before the high court), Raju responded that it had not been heard and alleged that the delay was attributable to Prasad.

Opposing the state's plea, senior advocate Kapil Sibal, appearing for Prasad, contended that the state was advancing an incorrect proposition of law by invoking Section 427 at the stage of considering suspension of sentence.

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Taking into account that the criminal appeal has remained pending since 2018, the bench refused to interfere with the suspension of sentence and instead requested the Jharkhand High Court to dispose of the appeal expeditiously.

Lalu was convicted and sentenced to three-and-a-half years' imprisonment by a CBI special court in January 2018 in the Deoghar treasury case, which is tied to the fraudulent withdrawal of ₹89.27 lakh from the Deoghar treasury.