Supreme Court upholds Lalu Prasad Yadav's bail in Deoghar fodder scam, rejects CBI plea
Synopsis
The Supreme Court has refused to cancel Lalu Prasad Yadav's bail in the Deoghar fodder scam, noting that seven years have passed since the Jharkhand High Court suspended his sentence. With the apex court now pushing for a six-month timeline on pending appeals, the long-running case may finally be heading toward a definitive legal conclusion.
Key Takeaways
The Supreme Court on 14 July dismissed the CBI's plea to cancel Lalu Prasad Yadav's bail in the Deoghar fodder scam case.
A Bench of Justices M.M.
Varale noted that seven years had passed since the Jharkhand High Court suspended Yadav's sentence.
The CBI argued the sentence was suspended on an erroneous premise that Yadav had completed 50 per cent of his sentence.
The apex court directed the Jharkhand High Court to expedite pending criminal appeals, preferably within six months .
The fodder scam involved fraudulent withdrawals of nearly ₹950 crore from the undivided Bihar treasury between 1992 and 1995 .
The Supreme Court on Tuesday, 14 July declined to interfere with the Jharkhand High Court's order suspending the sentence of Rashtriya Janata Dal (RJD) chief and former Bihar Chief Minister Lalu Prasad Yadav in the Deoghar fodder scam case, effectively dismissing the Central Bureau of Investigation's (CBI) plea to cancel his bail. A Bench of Justices M.M. Sundresh and P.B. Varale noted that seven years had elapsed since the High Court suspended Yadav's sentence and found no grounds to disturb that order.
What the Supreme Court Said
The Bench, led by Justice Sundresh, stated plainly: 'We are not inclined to interfere in the impugned order. The appeal is of the year 2018. It will only be appropriate to request the High Court to expedite the hearing of the appeal, preferably within six months.' The court simultaneously directed the Jharkhand High Court to fast-track both Yadav's appeal against his conviction and the CBI's cross-appeal seeking enhancement of his sentence, given that the offences involved serious economic crimes by a public servant holding high office.
CBI's Arguments and the Court's Response
Additional Solicitor General S.V. Raju, appearing for the CBI, contended that the Jharkhand High Court had suspended Yadav's sentence on an erroneous premise — that he had completed 50 per cent of his sentence. Raju further submitted that Yadav's earlier applications for suspension of sentence had been rejected on merits, and that the High Court had wrongly treated the sentences as concurrent while granting relief. Senior advocate Kapil Sibal, representing Yadav, countered that the High Court had exercised its judicial discretion on a uniform standard. The apex court, taking note of the fact that the appeals had remained pending since 2018 — and attributing part of the delay to procedural factors — declined to disturb the suspension of sentence.
Background: The Fodder Scam
The fodder scam cases stem from fraudulent withdrawals of nearly ₹950 crore from the undivided Bihar treasury between 1992 and 1995, during a period when Lalu Prasad Yadav served as Chief Minister and held charge of the Animal Husbandry Department. He was subsequently convicted in cases relating to fraudulent withdrawals from the Deoghar, Dumka, and Chaibasa treasuries — all of which now fall within the state of Jharkhand. The scam is among the largest livestock-department frauds in Indian political history, and Yadav's legal battles across multiple related cases have stretched over three decades.
What Happens Next
With the Supreme Court declining to cancel the bail, Yadav remains out of custody for now. However, the apex court's directive to the Jharkhand High Court to conclude the pending criminal appeals — ideally within six months — means the substantive question of his conviction and sentence could be revisited in the near term. The outcome of those appeals will determine whether his sentence is ultimately confirmed, reduced, or enhanced on the CBI's cross-plea.
Point of View
But courts have historically been reluctant to cancel bail when the underlying appeal has languished this long. The real accountability question is now squarely on the Jharkhand High Court: if it fails to conclude the appeals within the six-month window the Supreme Court has signalled, the fodder scam — one of independent India's most politically consequential corruption cases — risks becoming a permanent procedural limbo. That outcome would serve neither justice nor deterrence.
NationPress
14 Jul 2026
Frequently Asked Questions
What did the Supreme Court decide in Lalu Prasad Yadav's fodder scam case?
The Supreme Court on 14 July declined to cancel Lalu Prasad Yadav's bail in the Deoghar fodder scam case, dismissing the CBI's plea. The Bench noted that seven years had passed since the Jharkhand High Court suspended his sentence and found no grounds to interfere.
What is the Deoghar fodder scam?
The Deoghar fodder scam is part of a larger series of cases involving fraudulent withdrawals of nearly ₹950 crore from the undivided Bihar treasury between 1992 and 1995. Lalu Prasad Yadav was Chief Minister and held charge of the Animal Husbandry Department during that period and was subsequently convicted in cases related to withdrawals from the Deoghar, Dumka, and Chaibasa treasuries.
Why did the CBI challenge Lalu Prasad Yadav's bail?
The CBI argued that the Jharkhand High Court had suspended Yadav's sentence on an erroneous premise — that he had completed 50 per cent of his sentence. The agency also contended that earlier applications for suspension had been rejected on merits and that the High Court wrongly treated the sentences as concurrent.
What has the Supreme Court directed the Jharkhand High Court to do?
The Supreme Court has requested the Jharkhand High Court to expedite the hearing of pending criminal appeals in the case, preferably within six months. This includes both Yadav's appeal against his conviction and the CBI's appeal seeking enhancement of his sentence.
Who represented Lalu Prasad Yadav and the CBI in the Supreme Court?
Senior advocate Kapil Sibal appeared for Lalu Prasad Yadav, arguing that the Jharkhand High Court had exercised its judicial discretion on a uniform standard. Additional Solicitor General S.V. Raju represented the CBI and pressed for cancellation of the bail.
