Supreme Court Refuses to Cancel Lalu Yadav’s Bail in Fodder Scam, Directs High Court to Expedite Appeal

July 14, 2026

New Delhi: In a significant relief for Rashtriya Janata Dal (RJD) chief and former Bihar Chief Minister Lalu Prasad Yadav, the Supreme Court on Tuesday refused to interfere with the Jharkhand High Court’s order granting him bail in the Deoghar fodder scam case. The apex court, however, asked the High Court to dispose of the pending criminal appeal within six months.

A Bench comprising Justice M.M. Sundresh and Justice P.B. Varale dismissed the plea challenging the suspension of Lalu Yadav’s sentence, observing that nearly seven years had passed since the High Court granted him relief in 2019.

Supreme Court Declines to Interfere

The Supreme Court said it was not inclined to interfere with the Jharkhand High Court’s order suspending Lalu Yadav’s sentence.

The Bench noted that the criminal appeal has remained pending since 2018 and directed the High Court to hear and dispose of the matter preferably within six months, while keeping the legal issues raised by the parties open for consideration.

Why Did the CBI Seek Cancellation of Bail?

The Central Bureau of Investigation (CBI) had challenged the Jharkhand High Court’s July 2019 order granting Lalu Yadav bail.

The agency argued that the High Court incorrectly calculated the period of imprisonment undergone by Yadav while granting suspension of sentence. According to the CBI, his sentences in multiple fodder scam cases should not have been treated as running concurrently for the purpose of granting bail.

Senior advocate Kapil Sibal, appearing for Lalu Yadav, opposed the CBI’s arguments and contended that the High Court had followed the same principle applied in similar cases where convicts were granted suspension of sentence after completing a substantial portion of their imprisonment.

What Is the Deoghar Fodder Scam Case?

The Deoghar case is one of several cases linked to the multi-crore fodder scam, involving fraudulent withdrawals from the Animal Husbandry Department’s treasury in the undivided Bihar during the 1990s.

Lalu Prasad Yadav was convicted by a special CBI court for the illegal withdrawal of ₹89 lakh from the Deoghar Treasury between 1991 and 1994, when he was the Chief Minister of Bihar. He was sentenced to three-and-a-half years’ imprisonment, following which the Jharkhand High Court suspended his sentence and granted him bail in July 2019 pending the hearing of his appeal.

The Supreme Court’s latest order means Lalu Yadav will continue to remain on bail while the Jharkhand High Court hears his appeal against the conviction.