Author: Pushpa Prasad, Faculty of law, Delhi University
INTRODUCTION
The fodder scam case also known as the “animal fodder scam”, is a significant political and financial scandal that emerged in India during the 1990s .It is primarily involved in the embezzlement of funds allocated for the procurement of animal fodder in the state of Bihar. The scam came to light when the government officials, supplies,and politicians collaborated to make fraud of the large sum of money by creating fake invoices and fictitious suppliers. Notably former Bihar Chief Minister Lalu Prasad Yadav was one of the key figures implicated in the scam.
EARLY PHASE OF FODDER SCAM
The fodder scam began in the early 1990s when the Bihar government granted fund for the fodder of animal husbandry but the officials and the coworkers along manipulated the money allotted for the development in animal husbandry by making false invoices, receipts, and falsified the delivery address everything was only present in documented form nothing was in actual field. The scam was estimated to be around Rs 950 crore which had been misappropriated over several years.
The scam started unravelling in 1996 when Jagannath Mishra who was serving as the chief minister of Bihar was found to be one of the earliest accused of the scam. The then Comptroller and Auditor General of India, TN Chaturvedi in his observation it was found that there was regular delay of monthly accounts submissions of the Bihar treasury.The warning instructions by the PAGS and CAG were given to the Bihar Government for the continuous embezzlement of funds by the powerful mafias and the politicians.
In 1992 then police officer Bindhu Bhushan Dvivedi who was in the state vigilance department submitted a report regarding the involvement of high profile persons even the Chief Ministers and many suspected persons.
On 27 January 1996, the deputy commissioner Amit Khare conducted a raid on the officers of the animal husbandry department and it conclusively indicated large scale embezzlement by officials and the business peoples.
After the raid initially the matter was laid by Phoolchand Singh who even was involved in scam.Bihar police played a key role by filing subsequents FIR against the suspected person. A large number of PILs were filed in Patna High Court to take the matter seriously and the case to be led by CBI. Patna High Court ordered the CBI investigation in this matter.
CBI INVESTIGATION
The CBI investigation highlighted the issues of corruption in government procurement by investigating 41 cases which were recorded by the State Police and 23 cases registered on the bases of collected evidence, including documents and testimonies from the whistleblowers and former officials.
On 27 th March 1996, the CBI filed the first FIR in the Chaibasa treasury case. In 1997, CBI seeked permission of the Governor of Bihar to prosecute the then Chief Minister Lalu Yadav and filed chargesheet against him and other fifty five individuals . Under the sections
Section 420 and Section 120(b) of IPC ,1860 which describe forgery and punishment of criminal conspiracy.
Section 13 (b) of the Prevention of Corruption Act which describes the law of criminal misconduct by a public servant.
FALL OF THE POLITICAL CAREER OF THE LALU PRASAD YADAV
Lalu Prasad Yadav’s political career witnessed a significant downfall due to his involvement in the Fodder Scam after the chargesheet of the CBI the opposition demanded his resignation as the Chief Minister of Bihar and he formed a new party named as RJD in 1997. Later on he resigned as the Chief Minister and his wife Rabri Devi replaced him and formed the government by gaining the vote of confidence.
In 2001 Jharkhand separated from Bihar and formed the new state which led to the transfer of cases which belonged to the Jharkhand jurisdiction.
IN THE FIRST FODDER SCAM
The first trial started in February 2002. A total of 170 persons were charged in which 55 persons of them were dead, seven became the government witness, six fleeing and two accepting the allegations. In 2013 Lalu was found guilty in the matter of stealing Rs 37.7 crores from the Chaibasa treasury and he was sentenced five years in prison, but in December 2013 the Supreme Court granted bail.
SECOND FODDER SCAM CASE
In 2017 the special CBI court found him guilty in the second scam case, in the illegal withdrawal of Rs 89.27 lakh from the Deoghar treasury in December 2017 and was sentenced to three and half years in prison and ten lakh rupee fine in another case. Later in 2021 after half of his sentence he was released on bail. Jagannath Mishra was no found guilty.
IN THE THIRD FODDER CASE
Lalu Prasad Yadav was found guilty for fraudulently withdrawing Rs 33.13 crores from the Chaibasa treasury and he was convicted and sentenced for five years in prison.
IN THE FOURTH FODDER CASE
The Special CBI Court convicted Lalu for the illegal withdrawal of Rs 3.76 crores from the Dumka treasury which had taken place between December 1995 and January 1996. This was Lalu Prasad Fourth Conviction in the Fodder Scam Case.
THE FIFTH FODDER CASE
Lalu Prasad’s fifth conviction was for embezzling Rs 139.35 crore from the Doranda Treasury (Ranchi). convicted to five years in prison and a fine of Rs 60 lakh in the Doranda Treasury theft case.
This was Lalu Yadav’s fifth and final accusation of being involved in the Fodder Scam. Lalu Yadav received sentences of seven years in prison in two different Chaibasa Treasury cases: five years for illegally withdrawing funds from the Dhumka Treasury and four years for illegally withdrawing funds from the Deoghar Treasury. In each of the four cases, Lalu Yadav has completed half of his sentence.
CHARGES FRAMED AND RELEVANT SECTIONS MENTIONED IN THE FODDER SCAM CASE
Lalu Prasad Yadav was found guilty under Section 120 B, Section 409,Section 420,Section 467,Section 468, Section 471, Section 477A of Indian Penal Code 1860 and Section 13 of The Prevention of Corruption Act, 1988.
Section 120B of IPC grants punishment of criminal conspiracy the punishment are divided into two forms in first no express provision in the code exists for the punishment of a conspiracy to commit an offence punishable to death life imprisonment for a term of two years or more, the person would be punishment in the same manner as if he had abetted such an offence.
In other situations of conspiracy the punishment is either imprisonment for a term not exceeding six months or both.
According to Section 409, a public servant, banker, merchant, or agent who violates the law in their capacity as a property owner faces a life sentence or a term of imprisonment of any kind that can last up to ten years, in addition to a fine.
Section 420 Cheating and Dishonestly inducing delivery of property : it states whoever cheats or dishonestly induces the person deceived to deliver any property or even alter or destroy the whole property of which is signed or sealed and capable of converting into a valuable security shall be punished with imprisonment of either description for a term which may extend to seven years and shall also be liable to fine.
Section 467 Forgery of valuable security, will, etc.
Anybody who forges a document that may be a will, valuable security, a document authorising the adoption of a son, document grafting someone the right to create or transfer valuable security, a document authorising someone to receive the principle interest or dividends, a document authorising someone to deliver movable property document that is falsified to be a receipt acknowledging the payment of money shall be punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
Section 468 Forgey for the purpose of cheating : whoever commits forgery with the intention to cheat shall be punished with imprisonment of either description for a term which may extend to seven years, and shall be liable to fine.
In this case the accused was held guilty of offences under Section 467,468 and Section 120B of IPC 1860.
Section 471 of IPC any one suspected of using the forged document as a genuine document shall be punished in the same manner as if he had forged such a document ,the document may exist in electronic record or document .
Section 477A states about the Falsification of the Accounts : it primarily refers two types of offences
Deceiving, manipulating, destroying ,mutilating, or fabricating any book, account or electronic record, and
Deception, manipulation, destruction, mutilation, or fabrication of any electronic record, book, or account, and
These two offences are not related to one another; they are separate.
The penalty is either a fine, a term of imprisonment of any kind up to seven years, or both.
The Prevention of Corruption Act, 1988
Section 13 of the Act criminalises criminal activity by a public servant is said to commit criminal misconduct if he dishonestly or fraudulently misappropriated or otherwise converts for his own use any property under his control as a public servant, or if he intentionally enriches himself illicitly during the period of his office.
If a person, or someone acting on his behalf, has or has had property or financial resources that are out of proportion to his known sources of income and that the public servant is unable to adequately account for, it is considered that he has intentionally and illegally enriched himself. According to section 13, criminal misconduct has a minimum sentence of four years in jail and a maximum sentence of ten years, in addition to a fine.
RECENT SCENARIO SURROUNDING THE FODDER SCAM CASE
In April 2022 the fifth fodder scam case appeared on the scene. The special CBI Court sentenced Lalu Prasad Yadav to five years in prison and fine him 60 lakhs for illegal withdrawals of 139.5 crores from the Doranda Treasury.Yadav appealed his conviction in the fifth fodder scam case to the Jharkhand High Court where the court granted bail and rejected the CBI’s arguments and ordering him to deposit Rs 10 lakh with the court.
Conclusion
The Fodder Scam, which emerged in the 1990s in India, involved the embezzlement of public funds meant for livestock feed in the State of Bihar. The scandal implicated several politicians, implicated several politicians, bureaucrats and suppliers, leading to widespread outrage and political repercussions.
The case highlighted significant issues of corruption and mismanagement within government systems. The legal proceedings resulted in multiple convictions, including that of former Bihar Chief Minister Lalu Prasad Yadav, who was sentenced to prison for his role in the scam. The fallout from the case prompted reforms in governance and increased scrutiny over public spending, aiming to prevent similar incidents in the future. The Fodder Scam remains a critical example of the challenges in combating corruption in public administration in India.
FAQS
When did the scam begin and how did former Chief Minister Lalu Prasad Yadav get involved in the scam ?
The scam started in 1990s with small scale embezzlement by government officials filing false expenses reports but later on it grew and turned in the involvement of different group of people even the Ministers of the State, Initially Lalu was not involved in the scam later when he became the Chief Minister of Bihar and did not act upon the outflow of the money of the Animal Husbandry and the large portion of Rs 950 crore was withdrawn during his tenure.
What impact did the Fodder Scam have on former Chief Minister Lalu Prasad Yadav career in politics?
As he was convicted in several cases related to fodder scam. In 2013, he was sentenced to five years in prison , which led to his disqualification from the Lok Sabha. The scandal tarnished his political image and led to decline in his party’s influence in Bihar. The RJD which he founded faced a loss of support in the subsequent elections.
After his conviction Lalu’s daughter Tejashwi Yadav, emerged as a prominent leader within the party representing a new generation of leadership.
