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Home > India News > Supreme Court Upholds Lalu Prasad Yadav’s Bail in Fodder Scam Case, Directs HC to Decide Appeal in 6 Months

Supreme Court Upholds Lalu Prasad Yadav’s Bail in Fodder Scam Case, Directs HC to Decide Appeal in 6 Months

The Supreme Court refused to cancel Lalu Prasad Yadav's bail in the Deoghar fodder scam case, dismissing the CBI's appeal while directing the Jharkhand High Court to decide the pending appeals within six months.

Published By: Sudeep Singh Rawat
Last updated: Tue 2026-07-14 15:58 IST

The Supreme Court on Tuesday dismissed a plea of the Central Bureau of Investigation (CBI) challenging a 2019 Jharkhand High Court order and refused to interfere in the bail granted to former Bihar Chief Minister Lalu Prasad Yadav in one of the fodder scam cases.

A bench comprising Justices MM Sundresh and PB Varale upheld the High Court order but directed it to hear the pending appeals filed by both Yadav and the CBI against the trial court order at the earliest.

Supreme Court Declines to Interfere with Bail Order

The apex court said that it was “not inclined to interfere” with the High Court’s order granting bail to Yadav.

However, noting that the appeals have remained pending since 2018, the Bench requested the Jharkhand High Court to conclude the hearing “preferably within six months.”

“We are not inclined to interfere in the impugned order… It will only be appropriate to request the High Court to expedite the hearing of the appeal… The legal issue is kept open,” the court said.

What Is the Deoghar Fodder Scam Case?

The case is related to the embezzlement of Rs 89 lakh from Deoghar Treasury between 1991-94 when Lalu Prasad Yadav was the Chief Minister of undivided Bihar.

A special CBI court in Ranchi had sentenced Yadav to seven years in jail in December 2017 under different sections of the Indian Penal Code, including criminal conspiracy, cheating, forgery and the Prevention of Corruption Act.

He was granted bail, and his sentence was suspended by the Jharkhand High Court in July 2019, which was challenged by the CBI in the Supreme Court. The apex court had noted the pending appeal in February 2020.

CBI and Lalu’s Lawyers Clash Over Bail

Additional Solicitor General SV Raju, appearing for CBI, argued that the High Court committed an error by suspending the sentence of Yadav by considering him to have undergone 50 per cent of his imprisonment. He said the sentences were not concurrent and alleged that Yadav, who the agency described as the “kingpin” of the fodder scam, had misused his official position to facilitate fraudulent withdrawals through forged allotment letters.

Appearing for Yadav, senior advocate Kapil Sibal said the High Court has acted within the limits of its judicial discretion and dismissed the CBI’s interpretation of computing the sentence.

The Supreme Court, while hearing both sides, rejected the plea to quash Yadav’s bail but said the pending appeals must now be decided without any further delay.

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