Top 6 scams that have rocked Bihar and its elections over the decades

Here are the top scams that have rocked one of India’s poorest states, with Rashtriya Janata Dal (RJD) supremo Lalu Prasad being at the “fountainhead” of some of them:

1. Fodder scam

The most infamous scam to hit Bihar was the Rs 950 crore fodder scam also known as "Chara Ghotala". It surfaced in the mid-1990s, and continues to haunt one of its key accused – former Bihar Chief Minister and RJD president Lalu Prasad – to this day.

As Bihar is poised to go to the polls, this scam that nearly brought down Bihar's strongman, is back in the spotlight. Besides leaders from the National Democratic Alliance (NDA) raking up this scam in their election rallies, the Bihar government also brought it back in the news, when it announced that it intends to confiscate the property of the accused in the fodder scam. The government said it wanted to recover the “siphoned off” funds or embezzled money from the accused in this multi-crore scam.

As of today, the 77-year-old Lalu Prasad stands convicted in a few cases related to the scam but is currently out on bail for health reasons. However, even as he continues to battle legal challenges from other scams, in the dusty corridors of Bihar’s political history, few scandals have left as deep a scar as the fodder scam.

The anatomy of a scam

At its core, the fodder scam was simply audacious in its implementation. Over a span of 20 years, officials in Bihar’s animal husbandry department — with the alleged blessing of political patrons — siphoned off hundreds of crores from the state treasury. The money, which was meant for livestock feed and medicines, was funnelled through fake bills, ghost suppliers, and inflated invoices.

The numbers were staggering. Against an approved budget of ₹10.5 crore for livestock procurement between 1993 and 1996, the department had withdrawn a whopping ₹255.33 crore.

Suppliers, in collusion with officials, submitted fake invoices claiming to have transported buffaloes, pigs, and goats over long distances using implausible vehicles—including scooters and oil tankers.

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One of the bill claims, which clearly stood out for its absurdity, was for ₹15 lakh to purchase 500 kg of mustard oil to polish buffalo horns!

The lid blown off

The first tremors were felt in 1992–93, when Ramjivan Singh, then animal husbandry minister, raised concerns about discrepancies in the accounts in the deparment, in the Bihar Assembly. But it wasn’t until 1996, when Chaibasa’s deputy commissioner Amit Khare raided the animal husbandry department and uncovered fraudulent withdrawals, that the scandal truly broke.

A Public Interest Litigation filed in the Patna High Court led to a CBI probe and the unravelling began. Investigations found that Lalu Prasad was at the centre of it all, and the RJD leader's folk hero image received a huge dent.

Multiple jail stints

In 1997, the CBI filed its first FIR. That same year, Lalu Prasad, then Chief Minister and finance minister of Bihar, stepped down and dramatically installed his wife, Rabri Devi, as his successor before surrendering to the CBI. It was the first of many stints in jail for the RJD supremo.

Since then, Lalu has been convicted in five of six fodder scam cases, with sentences ranging from three-and-a-half to fourteen years. He has spent years in and out of prison, secured bail multiple times, and continues to battle legal challenges.

The Supreme Court eventually transferred the cases to Jharkhand after the state’s creation in 2000. The scam eventually expanded into 53 distinct cases, implicating more than 500 individuals—including bureaucrats, politicians, and suppliers. The CBI-led trials stretched over several decades, during which over 200 witnesses testified, and seven of the accused passed away before the proceedings concluded.

Former Chief Minister Jagannath Mishra, another key accused, was convicted in some cases but acquitted in others.

The fodder scam wasn’t just about money. According to political analysts, it was about the rot in the system — a culture of impunity, a nexus of power and corruption, and the failure of institutions to act until pushed to the brink.

2. IRCTC scam

The IRCTC scam, dates back to Lalu Prasad's tenure as Union railway minister from 2004 to 2009. The name of this scam refers to the The Indian Railway Catering and Tourism Corporation (IRCTC), a public sector undertaking under the administrative control of the Ministry of Railways.

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According to the CBI, when Lalu Prasad was railway minister, the contracts for the operation and maintenance of two Indian Railway Catering and Tourism Corporation (IRCTC) hotels — BNR Ranchi and BNR Pui were awarded to Sujata Hotels, a private firm owned by businessmen Vijay and Vinay Kochhar.

In return, the CBI alleged, a three-acre plot of land in Patna was transferred to a shell company, Delight Marketing company, later renamed as Lara Projects LLP. This company was allegedly controlled by associates of the Yadav family. The land, reportedly sold at a fraction of its market value, was eventually transferred to Rabri Devi and Tejashwi Yadav.

The FIR and investigation

The CBI registered an FIR in July 2017, naming Lalu, his wife Rabri Devi, and son Tejashwi Yadav, and several others, including the Kochhar brothers and former IRCTC managing director PK Goel. Raids were carried out at multiple locations linked to the Yadav family in Patna, Delhi, Ranchi, and Gurugram.

The CBI called it a textbook case of quid pro quo: public contracts exchanged for private gain. The chargesheet named 14 accused, including the Yadavs, the Kochhar brothers, and former IRCTC managing director PK Goel.

On March 1, 2025, a few months before the Bihar assembly polls, the prosecution concluded its arguments on framing charges. Special Public Prosecutor DP Singh asserted that the evidence pointed to a clear conspiracy involving manipulation of tender processes and abuse of official position.

Finally, on October 13, 2025, the court framed the charges under sections 120B (criminal conspiracy) and 420 (cheating) of the Indian Penal Code, along with provisions of the Prevention of Corruption Act, against Lalu Prasad, Rabri Devi, Tejashwi Yadav and 11 others. All the accused pleaded not guilty.

Notably, the Delhi court judge’s comments were telling. Rabri and Tejashwi prima facie emerge as participants in the criminal conspiracy of which Lalu Prasad was seemingly the fountainhead, said the Delhi court judge. He also observed that the CBI had presented a “cogent chain of evidence” linking the accused” and added that the agency was “led by the stench to the rot”.

Concluding that there was adequate substantiation in the allegations, the judge paved the way for trial proceedings to begin against the accused.

For the scam-tainted Lalu Prasad, once hailed as a grassroots leader and a champion of social justice, this is not unfamiliar territory. Yet, his political influence endures — now largely channelled through his son Tejashwi, who leads the Opposition in the Bihar Assembly.

The IRCTC case, which now enters its trial phase after eight years of investigation and pre-trial hearings, is expected to cast a long shadow, especially on INDIA bloc alliance's chief ministerial candidate Tejashwi Yadav.

Timeline

2004–2009: Alleged scam period during Lalu’s tenure as Railway Minister

July 2017: CBI registers FIR and conducts raids

March 2025: CBI concludes arguments on framing charges

October 13, 2025: Court frames charges; all accused plead not guilty

Next phase: Trial proceedings to begin before the Rouse Avenue Court

3. Bitumen scam

The Rs 1.57 crore bitumen scam first surfaced in 1997 during RJD chief Lalu Prasad’s tenure as chief minister of Bihar.

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This scam revolves around alleged false documentation on the transportation of bitumen used for road construction to different sites in Bihar. However, investigations revealed that the bitumen was not delivered and illegally sold elsewhere.

In short, the case relates to the embezzlement of bitumen worth Rs 1.57 crore between 1994 and 1996, which eventually led to the conviction of former road minister Mohammed Illiyas Hussain and seven others.

How case came to light

The case came to light in the 1994-95 fiscal when 510MT of bitumen worth Rs 26 lakh was procured from Haldia in West Bengal for delivery to the then executive engineer of road construction department. The delivery never took place.

Although records showed that bitumen was delivered, investigations revealed that no actual delivery occurred.

The matter was first probed by the state police, but in 1997, the case was handed over to CBI. The agency probe revealed that instead of reaching the designated sites, the bitumen was allegedly sold in the open market, and transportation charges were falsely claimed from the government.

Convictions

In March this year, the former Bihar road construction department minister and RJD leader Mohammad Ilyas Hussain and seven others were convicted in the 28-year-old bitumen scam by a special CBI court and sentenced to five years in jail and fined Rs 20 lakh.

Hussain was convicted and sentenced in two cases related to this scam. Earlier in September 2018, he was involved in the misappropriation of 375 metric tonnes of bitumen worth approximately ₹18.75 lakh, intended for the road construction department in Gumla. He got a four-year rigorous imprisonment sentence for this case.

Subsequently, in March 2025, he was convicted for three-year imprisonment and a fine of Rs 32 lakh for the embezzlement of 3,266 metric tonnes of bitumen from Haldia worth ₹1.57 crore between 1994 and 1996, intended for road construction in Chatra and Hazaribagh. After his first conviction, he lost his membership in the Bihar Legislative Assembly.

The other convicts include his personal secretary Shahabuddin Beg, P&T director Kedar Paswan, deputy director Mujtaba Ahmed, executive engineer Ramanand Ram, section officer Shobha Sinha and transporter supplier Dudheshwar Nath Singh.

4. Land for jobs scam

In the "land for jobs" scam in Bihar, individuals were allegedly awarded government jobs – primarily in the Indian Railways – in return for land parcels that were transferred to the family of former railway minister Lalu Prasad.

According to investigations by the CBI and ED, between 2004 and 2009, land was purchased from job aspirants at undervalued rates and subsequently transferred to members of Lalu's family.

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The CBI is probing allegations that several people were given Group D jobs in the Indian Railways in exchange for land worth crores in Bihar. Lalu Prasad, the railway minister at the time, along with his family members are accused of accepting bribes in the form of land in exchange for these appointments.

When it came to light

The "land-for-jobs" scam first came to light in 2009 after the new UPA government came to power and Lalu lost his position as Union railway minister as his party wasn’t part of the new government.

The CBI investigation into the scam was initiated by the new railway minister Mamata Banerjee after allegations were made against Lalu. The investigation was restarted in September 2021.

After a preliminary inquiry, the agency filed an FIR in 2022 against Lalu, his wife and his daughters Misa Bharti and Hema Yadav. The CBI alleged that Lalu and his associates had taken large amounts of land from people who were seeking jobs in the Indian Railways.

The investigation also revealed that many of the appointments made by Lalu's office were allegedly based on favouritism and nepotism, and not on merit.

In the FIR, the CBI alleged that between 2004 and 2009, several residents of Patna were appointed as substitutes for various Group-D posts. These posts had no advertisements and the appointments were against norms and procedures for recruitment. These people were given jobs in different zones of the railways located in Mumbai, Jabalpur, Kolkata, Jaipur and Hajipu.

The CBI accused the Yadav family of acquiring over 1 lakh sq ft of land through the scam at a cost of just Rs 26 lakh, despite the fair value of the land being over Rs 4.39 crore.

Also read: Land-for-job 'scam': ED chargesheets Rabri Devi, daughters, RJD smells conspiracy

The CBI charged Lalu and his family under Sections 120B (criminal conspiracy), 420 (cheating), 467 (forgery of valuable security, will, etc.), 468 (forgery for the purpose of cheating) and 471 (using a forged document as genuine) of the Indian Penal Code (IPC) and various sections of the Prevention of Corruption Act. The case is still being heard in court.

5. Bihar examination scam

In 2016, the 'Bihar Toppers scam' exploded causing a lot of embarrassment for the ruling Nitish Kumar government.

This scam involved a large-scale corruption and exam-fixing racket within the Bihar School Examination Board (BSEB) where undeserving students were provided high marks or top ranks in exchange for money.

How it came to light

The racket came to light after video interviews of the Class 12 Humanities topper, Ruby Rai, and the science topper, Saurabh Shrestha, went viral on television in May 2016.

In these interviews, Ruby Rai, who scored 444 out of 500 marks, famously mispronounced "political science" as "prodigal science". To disprove those suggesting that it was a mere slip of tongue, the teenage student went on to say that cooking was her main area of focus in the subject.

While Saurabh Shrestha was unable to answer basic science questions, such as the link between water and H₂O. A forensic test confirmed that the handwriting on the answer sheets that had earned Ruby Rai top marks in the examination did not match hers, and the duplicate answer sheets did not have the education board's water mark.

Ruby Rai confessed to her guilt in an interrogation that followed, but said that she had only wanted to pass the Class 12 examination - not top it.

Opposition parties, including Lalu's RJD, latched on to the issue to criticise chief minister Nitish Kumar. They accused the government of looking the other way while its education officials indulged in major corruption rackets under its nose.

Modus operandi of racket

Bachcha Rai (Amit Kumar), the principal and secretary of Vishun Roy College in Vaishali district, turned out to be the kingpin of the racket. He was arrested for his role in manipulating officials along with other college administrators to change exam results by accepting bribes from students.

Methods included replacing original answer sheets with properly written ones, providing high marks even without checking papers, or arranging for professional "scholars" to take the exams. Accused individuals reportedly charged significant amounts, with one principal offering first-division results for around Rs. 25,000 and top ranks for Rs. 1 lakh or more.

The state government ordered a Special Investigation Team (SIT) probe, and the Enforcement Directorate (ED) later filed a money laundering case to investigate the illicit wealth generated. Over 21 people were arrested, and assets worth crores of rupees belonging to Bachcha Rai and other accused were attached by the ED.

After the backlash, the Bihar government implemented several reforms to curb cheating and corruption, including linking student applications to Aadhaar numbers, installing CCTVs at exam centers, and digitizing the entire process. Affiliations of many non-compliant schools and colleges were cancelled.

Calling the toppers scam as a "blot" on the state education system, Nitish Kumar had said that the fact that students could lay claim to high rankings through bribery instead of merit made them hang their heads in shame.

“The scam brought a bad name to the entire state," admitted Kumar at a Teacher's Day event in Patna. However, he said that the Bihar School Examination Board improved greatly in the years that followed.

6. Police constable recruitment exam scam

However, in 2023, the police constable recruitment exam was cancelled when allegations of a paper leak surfaced. A year earlier too, the Bihar Public Service Commission (BPSC) preliminary exam paper leak led to the cancellation of the exam. There were widespread reports of the question paper circulating on social media platforms like WhatsApp and Telegram shortly before the exam was scheduled to begin.

The ED is currently investigating the 2023 case, suspecting a gang of agents who leaked the papers, sold them to aspirants, and laundered the money. Hence, the ED suspects money laundering in this case as a gang of agents generated “proceeds of crime” (illicit funds) by leaking the exam papers and selling it to aspirants and used the money given by the candidates to create personal assets.

Raids have been conducted in Bihar, Jharkhand, Uttar Pradesh, and West Bengal.

Officials told the media that the masterminds of this alleged scam appear to be the same as that of the high-profile NEET UG paper leak ‘scam’ of 2024, making Bihar as one of the centres of this major medical exam scandal.