Promise of a grand mall on Danapur plot owned by a company taken over by Rabri Devi and her sons. Deepak Kumar Promise of a grand mall on Danapur plot owned by a company taken over by Rabri Devi and her sons. Deepak Kumar

When a Patna court had sought to know RJD chief Lalu Prasad’s sources of income, his lawyer spoke about a wedding gift from Lalu’s father-in-law — some cows that multiplied over the years and enabled him to run a dairy farm. It was the only business Lalu declared in the disproportionate assets case in which he was acquitted in 2006.

A decade later, BJP leader Sushil Modi has alleged Lalu’s family runs at least one more business that it has not disclosed — a motorcycle showroom in Aurangabad on land bought by Lalu’s elder son Tej Pratap Yadav in 2012, and not mentioned in his affidavit for the 2015 election that led to his becoming Bihar health minister. The Indian Express has accessed the sale deed, which shows that the land was indeed bought by Tej Pratap. The allegation that the showroom belongs to a company in which Tej Pratap is the major stakeholder, however, could not be independently verified.

What is on record is that members of the family — Lalu’s wife Rabri, minister sons Tej Pratap and Tejashwi, and daughters Ragini Lalu and Chanda Yadav — are also directors or shareholders in at least five other companies ostensibly dealing in export and import or construction. Registrar of Companies records show that shares of four of these companies, based in Patna and New Delhi, were acquired by the family from their original owners. In the fifth company, which has a number of shareholders, Tejashwi is a director.

“Getting land through proxy companies did not require individual purchases and all sale deeds were in names of the companies,” said Sushil Modi.

Lara Projects LLP

The name is a combination of the initial pairs of letters in Lalu and Rabri’s names. Initially Delight Marketing Company Pvt Ltd, the entity was formed in 1981, based in Delhi and owned by the family of RJD MP Prem Chand Gupta. In 2010-11, Rabri and Tejashwi became shareholders with Gupta’s wife Sarla transferring 1,401 shares to Rabri and one to Tejashwi, followed in 2013-14 by the transfer of 1,101 more shares to mother and son.

Showroom stands on Aurangabad plot bought by Tej Pratap. Ravindra Ravi Showroom stands on Aurangabad plot bought by Tej Pratap. Ravindra Ravi

The book value of the company’s assets in 2010-11 and 2013-14 was a little over Rs 2.28 crore and Rs 2.29 crore respectively. When the takeover took place in 2014 — as shown in RoC records — the value of Rabri and Tejashwi’s shares was just Rs 4.02 lakh. Sushil Modi alleged that the shares were heavily undervalued and said only an income tax inquiry could reveal why.

Directors Deoki Nandan Tulshyan and Gaurav Gupta resigned on February 11, 2014, followed by another director, Vijay Pal Tripathi, on June 26. Tej Pratap and Tejashwi were appointed additional directors on January 6, 2014, followed by Chanda Yadav on June 26 and Ragini Lalu on August 5. When the company was renamed Lara Projects LLP on February 14, 2017, Lalu’s daughters ceased to be associated with it and Rabri was inducted as designated partner along with her sons.

Delight’s declared objectives were import and export. RoC records show the new company changed its objectives to construction activities from November 21, 2016. The change facilitated the construction of what is being described as “Bihar’s biggest mall” in Danapur. One of the sale deeds (copy with The Indian Express) shows 105 decimals “agricultural” land (later converted) had been sold (deed no. 1490, khata number 94, plot number 55, Danapur) to Delight on February 25, 2005, for Rs 15.85 lakh by two Patna residents, Harsh Kochhar and Vinay Kochhar. Mangi Lal Rustagi was director of Delight then.

Prem Chand Gupta said, “Lara Projects LLP’ s three shareholders — Rabri Devi, Tej Pratap and Tejashwi — filed I-T returns every year and they followed all legal norms. My family members had transferred shares to Lalu’s family members and everything is on record.” Asked why his family gave up ownership, he said it was a family decision.

After the controversy broke, Lalu said, “Everything is in the public domain,” while Tejashwi added, “RoC records are on the Internet.” Tej Pratap has not commented yet.

Tejashwi did not explain why he did not declare ownership of the mall land in his 2015 election affidavit. The affidavits of both Tej and Tejashwi say they own 11 individual and shared land plots in Patna and Gopalganj. The upcoming mall, on Bailey Road, is being constructed by a company owned by RJD MLA Syed Abu Dojana.

Lara Distributors Private Ltd

The original company was Lara Interiors Private Limited, formed on January 17, 2005, its office on Patna’s Fraser Road. The name changed to Lara Distributors Pvt Ltd on March 22, 2010, with a new address at Koutilya Nagar, Patna. Lalu’s daughters Misa Bharti, Chanda and Ragini and wife Rabri became directors. Tej Pratap was appointed director in April 2010, but stepped down in 2015 after he was elected MLA. Tej remains the main stakeholder with 2.51 lakh shares; Rabri has 1.17 lakh, Ragini one lakh, Chanda 2,000 and Misa 1,000. The company’s declared business is in interior design products.

This is the company that, according to Sushil Modi, owns the Aurangabad motorcycle showroom. Additionally, Modi has alleged Madhya Bihar Gramin Bank gave a loan of Rs 2.29 crore to Lara Distributors Pvt Ltd on collateral security of the land. While the sale deed shows the land was bought by Tej Pratap, his poll affidavit does not mention it. RJD spokesperson Mrityunjay Tiwari said all norms had been complied with. “We are open to any probe,” he said.

AK Infosystems Private Limited

Haryana businessmen brothers Amit and Rajesh Katyal formed the company on September 28, 2006. In March 2007, the company bought nearly 29 decimals land at Panapur and 43 decimals at Chitkohra for Rs 39 lakh. Shareholders Amit and O P Katyal transferred ownership to Rabri and Tejashwi, who hold 85 and 15 per cent respectively. Tej Pratap, Tejashwi, Chanda and Ragini were appointed directors in 2014. The sisters remain directors; the brothers have stepped down.

That year, Amit Katyal transferred all shares — 1,500 to Tejashwi and 4,000 to Rabri. A Katyal-family-run company, Iceberg Industries Pvt Ltd, opened a liquor factory at Bihta, a suburb about 30 km from Patna, during Rabri’s second tenure (2000-05) as CM.

Sushil Modi, who has appointed a chartered accountant to probe RoC details of companies in which members of Lalu’s family are stakeholders, sought to know why the company hardly carried out any business. “How much did Lalu’s family spend to own a company worth crores? What was the consideration for such largesse to the family?” he said.

RJD national spokesperson Manoj Kumar Jha said: “Sushil Modi is using a hit-and-run method. All norms were followed.”

AB Exports Private Limited

In 2008, this company based in Defence Colony, New Delhi, bought 500 square yards with a house in New Friends Colony for about Rs 5 crore. It had taken loans from five jewellery companies of Mumbai. Delight Marketing, which would later become Lara Projects LLP, had shown its office address on that property. The shareholders of AB Exports were Ashok Kumar Banthia and Sangita Banthia. In 2011, ownership of the company and the house was transferred to Tejashwi, Tej Pratap and Chanda, who now own 98 per cent of the shares. A four-storey building is coming up on the land. Neither Tej nor Tejashwi had declared this land in their poll affidavits. Neither has responded to questions about it. RJD spokesperson Mrityunjay Tiwary said: “When our party chief has said he is open to a probe, the matter should rest there.”

Fairgrow Holdings Private Ltd

With its office at 130/1 Bakul Bagan Road, Kolkata, the company has land worth Rs 76.32 lakh. RoC records of 2015 show Yash Choudhary and Brij Sarin, residents of Delhi, as directors, and 20 individuals and companies as shareholders. Tejashwi was appointed director on October 20, 2014. RJD spokesperson Tiwary said becoming a director of a company is not illegal.

Meanwhile, gifted land…

FROM KANTI SINGH: On June 6, 2005, the RJD leader gifted Lalu’s sons, then minors, a 9.3-decimal plot with a house (plot number 1028, khata number 113) at Chotkohra, Patna, through a registered deed (book no. 1, deed no. 1, Patna) on June 6, 2005. The deed of gift says: “… Whereas donees have been very close to the donor like her own sons, they have been sincerely serving the donor. The faithful service of donees please the donor and so, the donor desired to make a gift in favour of the donees.”

Kanti Singh told The Indian Express, “I had gifted land to Laluji because he wanted space for cows after vacating the CM house in 2006. My gift has no connection with my being made a minister in 2009.”

FROM RAGUNATH JHA: On June 18, 2005, the then RJD MP and Union minister gifted 3 kathas 2 dhurs (about 4,200 sq ft) with a house at Hajiapur, Gopalganj (khatas no. 155 and 157, part of cadestal survey plots no. 7, 8 and 9, tauzi no. 3947), to Tej Pratap and Tejashwi. The cost of the land and the house was assessed at Rs 6.5 lakh and Rs 2.25 lakh respectively. The deed of gift says: “… The donees’ parents have been very close to the donor for a long time, they have been close to the donor like his own sons, they have been sincerely serving the donor and have always stood by them like his own sons. Keeping in view the faithful service of donees, therefore the donor desired to make a gift in favour of donees.”

Jha’s son Ajit said: “We gifted the land and house to Tej and Tejashwi as a gift of love.”

FROM PRABHUNATH YADAV: On July 26, 2006, Rabri Devi’s brother Prabhunath Yadav gifted 6.4 decimals (plot no. 148, khata no. 255, deed no. 8377) to Rabri and her sons; the sale deed showed the value at Rs 14 lakh. The land was sold to Laxman Sharma of A K Infosystems — later taken over by the family — for Rs 70.25 lakh on April 25, 2010 (sale deed no. 11000, Patna).

Sushil Modi said: “It is a classic case of the family’s methods for owning land without directly coming into the picture.”

RJD spokesperson Manoj Jha said no one should have any problems with anyone gifting land and houses to Tej and Tejashwi as all legalities had been followed.

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