Although the scandal broke in 1996, the theft had been in progress, and increased in size, for over two decades.
The alleged theft spanned many years, was engaged in by many Bihar state government administrative and elected officials across multiple administrations and involved the fabrication of "vast herds of fictitious livestock" for which fodder, medicines and animal husbandry equipment was supposedly procured.
On Jan 27, 1996, the Dy.Comm. of West Singhbhum Districtt, Amit Khare, acted on information to conduct a raid on the offices of the animal husbandry department in the town of Chaibasa in the district under his authority. The documents his team seized, and went public with, conclusively indicated large-scale embezzlement by an organized mafia of officials and businesspeople.
Bihar CM Laloo Prasad Yadav ordered the constitution of a committee to probe the irregularities.
A Public Interest Litigation(PIL) was filed with the SC, which led to the court's involvement, and based on the ultimate directions issued by the supreme court, on March 1996, the Bihar HC ordered that the case be handed over to the CBI .
An inquiry by the CBI began and, within days, the CBI filed a submission to the High Court that Bihar officials and legislators were blocking access to documents that could reveal the existence of a politician-official-business mafia nexus at work.
As the investigation proceeded, the CBI unearthed linkages to the serving chief minister of Bihar,Laloo Prasad Yadav and, on May 10, 1997, made a formal request to the Governor of Bihar to prosecute Laloo.
On June 17, 1997 the Governor A R Kidwai gave permission for Laloo and others to be prosecuted.Five senior Bihar government officials (Mahesh Prasad, science and technology secretary; K. Arumugam, labour secretary; Beck Julius, animal husbandry department secretary; Phoolchand Singh, former finance secretary; Ramraj Ram, former AHD director), the first 4 of whom were IAS officers, were taken into judicial custody on the same day.
On June 23,1997 the CBI filed chargesheets against Laloo(relating to fraudulent withdrawals of
37 from the Chaibasa treasury of the (then) Bihar government) and 55 other co-accused, including Chandradeo Prasad Verma (a former union minister), Jagannath Mishra (former Bihar chief minister), two members of Laloo's Cabinet (Bhola Ram Toofani and Vidya Sagar Nishad), three Bihar state assembly legislators (RK Rana of the Janata Dal, Jagdish Sharma of the Congress party, and Dhruv Bhagat of the BJP) and some current and former IAS officers (including the 4 who were already in custody)Jagannath Mishra (former Bihar CM)was granted anticipatory bail by the Bihar state High Court.
Laloo's anticipatory bail petition, however, was rejected by the same court, and he appealed to the SC which resulted in a final denial of bail on July 29. On the same day, Bihar state police were ordered to arrest him. The next day, he was jailed.
With demands for his resignation continuing to mount, on July 25, Laloo resigned from his position, but was able to install his wife,Rabri Devi as the new CM on the same day.
On July 28, Rabri's new government successfully won another trust vote in the Bihar legislature by a 194-110 vote, thanks to the Congress and Jharkhand Mukti Morcha Parties voting in alignment with the RJD
After 135 days in judicial custody, Laloo was released on bail on December 12, 1997
CBI Court Frames Charges - Thursday March 1,2012
CBI Judge V.K. Srivastava framed charges against former Bihar Chief Ministers Lalu Prasad and Jagannath Mishra;
Janata Dal (United) MP Jagdish Sharma
and former RJD MP R.K. Rana
in the case relating to fraudulent withdrawals of around Rs. 46 lakh by officials of State Animal Husbandry Department from Banka and Bhagalpur treasuries through fake enforced bills between 1994-96(During the period, Lalu Prasad Yadav was the CM of Bihar)
Lalu Prasad Yadav Found Guilty in Fodder Scam Monday Sep 30,2013
The quantum of sentence will be announced Oct 3,2013
Lalu Prasad Yadav and 44 others have been charged with fraudulent withdrawal to the tune of Rs 37.7 crore on fake fodder bills from Chaibasa treasury in the 1990s in a case lodged by CBI
Former chief minister Jagannath Mishra was also convicted by a Ranchi court, along with six other politicians, two of who belong to the ruling Janata Dal-United.
Consequence of the Verdict
The verdict is crucial for Lalu Prasad and his future as a political leader since the central government ordinance that would have shielded tainted and convicted parliamentarians and legislators from disqualification may be withdrawn after Congress vice president Rahul Gandhi trashed it and
The verdict in the fodder scam to have a bearing on Bihar politics, as the RJD chief stands disqualified as a Lok Sabha member. As per the Supreme Court order that an MP or legislator would stand disqualified immediately if convicted by a court for crimes with punishment of two years or more
15 years after the Rs 900-crore fodder scam broke out, former Bihar chief minister and Rashtriya Janata Dal chief Lalu Prasad Yadav's fate was sealed on September 30, 2013 with the CBI pronouncing him as guilty
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