Author: Manya Pankaj Kumar Prabhakar, Shree L.R. Tiwari College of Law
Fodder Scam also known as Chara Ghotala. It was one of the popular political and financial scandal occurred in Bihar in the mid- 1990s. What was fodder scam, how did it come into light? The fodder scam refers to illegal withdrawal worth 950 crore from various government department treasuries for fictitious expenditure on fodder and other requirements for the cattle.
INTRODUCTION
Chara ghotala a fodder scams a biggest corruption scandal of Bihar government. It was illegal way of taking out money from state funds for personal gain. It was carried out in the district of Chaibasa, Ranchi, Dumka, Gumla, and Jamshedpur in Jharkhand and Banka in undivided Bihar.
How it came into light?
While the scam was going on, in year 1985, CAG a constitutional authority which audits government expenses and income. So, T.N Chaturvedi of CAG department noticed an unusual activity that the animal husbandry department always submitted its financial report late. So, after this he checked some more of its details where he came to know that the financial report of animal husbandry department that was being submitted consisted illegal expenses.
T.N Chaturvedi immediately wrote down the letter on feb 1985 to Bihar CM Bindeshwari Dubey that Bihar government consisted of ongoing fraud. But this letter was ignored and no action was taken on it. And this was the first time when the fodder scam was officially reported. But this was buried down at that time. Again, in the year 1987 the fraud was talked about again. Now the scam was exposed and people started talking about it in suppressed word. Nonetheless, the issue was left unresolved. After Lalu Yadav became CM Of Bihar, he took financial department in his under. The main mastermind of the scam R.K Rana became very and the chain of taking out money from animal husbandry department had increased a lot and again scam of animal husbandry department was being talked about in Bihar again. Many officers of income tax department raided at Ranchi’s airport. Now in this raid a person from animal husbandry department was being caught with a cash of rupees 1 crore and asked him then he said he was going to deliver the money and money belonged to higher authority of the government. After hearing this the matter was suppressed there itself again. But after a week officer of Ranchi vigilance department, Bindu Bhushan Dvivedi in his enquiry he got to know about illegal withdrawal of money from animal husbandry department. He wrote a letter to IG Vigilance G Narayan officially mentioning Lalu Yadav and ex Congress CM Bhagwat Jha Azad name. But this time again matter was suppressed.
The scam was now public common people was talking about it the pressure was put on government to transfer the matter to the CBI. The court issued further direction to to CBI to conduct an inquiry into the case.
CBI INVESTIGATION
Following the direction of Patna high court CBI started looking into matter. Case was brought to light through 41 incidents reported by the state police and 23 cases based on documents and testimonies. These cases prompted a CBI inquiry which highlighted systematic corruption in government.
On March 27 1996, marked the registration of First FIR by the CBI in Chaibasa Treasury Scam
And by 1997, CBI had submitted a chargesheet against then CM Lalu Yadav along with 55 others, following formal approval from the Bihar governor to initiate prosecution against him. This had a major impact on Lalu Yadav Political career and opposition demanded his resignation following his chargesheet.
OVERVEIW OF THE FODDER SCAM CASES
First Trial (2002)
Total Accused: 170
Outcomes: a) 55 died
b) 7 turned govt. witness
c)6 absconded
d)2 confessed
Lalu Yadav Conviction (2013)
Amount: unlawfully withdrawal of 37.7 crore rupees from Chaibasa Treasury
Sentence: He was sentenced for 5 years but released by SC in Dec 2013.
2. Deoghar Treasury Case (2017)
89.27 lakh rupees was illegally withdrawn and Lalu Yadav was sent to jail for 3.5 years along with 10 lakh rupees fine but later on he was released on Bail in 2021 after serving half the sentence. Although Jagannath Mishra was acquitted in this case.
3. Chaibasa Treasury Case
He was sentenced to jail for 5 yrs for illegally withdrawing 33.13 crore rupees.
4. Dumka Treasury Case (between dec 1995-jan1996)
Lalu Yadav was convicted fourth time in this case and sentence to prison for 5 years and this he was convicted by CBI.
5. Doranda Treasury Case (Final Conviction)
Lalu Yadav was held guilty of misappropriating 139.35 crore rupees and he was sentenced to prison and suffered penalty of 60 lakh rupee.
TIMELINE OF EVENTS
1996- JANUARY
The fodder scam was exposed after Deputy commissioner of Chaibasa Amit Khare, raided on the Animal Husbandry Department.
1997- JUNE
In its chargesheet, the CBI included Lalu Prasad among the accused.
JULY: Lalu prasad resigned as chief minister, appointed Rabri Devi as his successor. Surrenders before CBI court and sent to judicial custody.
2000- April
Rabri Devi was listed among the accused but was granted bail.
2001- October
Following the Bihar’s division, the SC handed over the case to Jharkhand HC.
2002 February
Trial begins in SBI CBI court in Jharkhand.
CHARGES FRAMED UNDER
Lalu Prasad Yadav was found guilty under sec120B (criminal conspiracy), sec409, sec420 (cheating and dishonesty), sec467(Forgery of valuable security, will…), sec468(forgery for the purpose of cheating), sec471(using forged document as genuine one) and sec 477 of IPc1860.
CONCLUSION
Fodder Scam also known as Chara ghotala was the biggest political scandal of Bihar government. It was illegal taking of money from state funds for personal gain. The mastermind of this scam was R.K Rana. He introduced Lalu Yadav with animal husbandry department. The scam was going on since years but has increased its speed when Lalu Yadav became CM and keep financial department under its control. But it is said that the truth can’t be hidden for so long the scam came into light and created a havoc between the government. Lalu Yadav and other politicians who are included in the scam got convicted.
FAQS
1.What is Fodder Scam?
Ans Fodder scam known as Chara Ghotala was a political and financial scandal of Bihar government. It was illegal taking out of money from various department for fictitious expenditure on fodder and other requirements for the cattle. The scam came to light in the 1990s.
2.Who were the major individuals involved in the scam?
Ans R.K Sinha, officer of animal husbandry department
Lalu prasad Yadav, former CM of Bihar.
Jagannath Mishra, former CM of Bihar.
And other politicians and bureaucrats
3. How many cases were filed under the scam?
Ans A total of 53 cases were registered out of these 44 cases went to the trial.
4.What charges were framed against Lalu Yadav?
Ans IPC sec 120B, 409,420, 467,468,471, 477A
