Former Bihar chief minister Lalu Prasad on Thursday recorded his statement in fodder scam case RC 47A/96, in which the Central Bureau of Investigation (CBI) has booked him as the key accused.

The case relates to alleged illegal withdrawal of Rs 139.35 crore from the Doranda treasury in undivided Bihar.

Lalu, who has been convicted in four fodder-scam cases, is lodged at the paying ward in RIMS for his treatment under judicial custody.

He was taken to the special CBI court of Sudhanshu Kumar Shashi where his statement was recorded for around two hours.

CBI prosecutor BMP Singh confronted Lalu with 34 questions aimed at establishing the RJD chief’s involvement in the scam when he was chief minister of Bihar from 1990 to 1997. Lalu denied all allegations.

The prosecutor asked whether or not Lalu helped and patronised officials of the animal husbandry department in perpetrating the scam, and whether he was aware that part of the withdrawn amount would be utilised in extending hospitality to politicians and government functionaries for protection and patronage.

The CBI confronted Lalu with what it called evidence that he was aware of the scam as the deputy accountant-general in its report in April 1990 had pointed out anomalies including fraudulent transportation of cattle in vehicles which were found to be cars, scooters and auto-rickshaws.

“But in criminal conspiracy with co-accused Raja Ram (now dead) you projected these reports as inadvertent errors and directed to correct the registration number,” the CBI lawyer said.

He further pointed out that at least two Bihar MLCs, Kripa Nath Pathak and Satudhan Prasad Singh, in March 1991 had brought the matter of fodder scam to the notice of the Bihar legislature.

Lalu, the CBI lawyer pointed out, had assured the House that action would be taken against accused officials and that he would never hesitate to order a CBI inquiry. But he did not order any inquiry.

The CBI alleged Lalu always scuttled police and CBI probes by referring the case to Public Accounts Committee of the Bihar Assembly.

The CBI asked Lalu whether or not during an Assembly debate at least two other legislators, Sushil Kumar Modi of the BJP and Nilambar Choudhary of the Congress, too had raised the issue of fraudulent withdrawal which Lalu could not reply to satisfactorily.

The CBI alleged that as CM and finance minister Lalu was aware of the excessive withdrawal but did not check the withdrawal. The agency’s lawyer pointed out that on a number of occasions Bihar lawmakers had drawn lalu’s attention about the scam in the House.

Lalu said that neither the accountant general nor collectors of districts had informed the government. He denied that that he was part of any conspiracy. He said that the budget of the animal husbandry department was prepared at the departmental level.

The CBI asked whether or not Lalu shielded Raja Ram. The prosecutor asked whether or not Lalu e was aware of the scam as the Bihar State Vigilance Bureau in August 1990 had lodged an FIR against animal husbandry official R.K. Das, Raja Ram and others but no inquiry was done. The CBI also pointed out that Lalu’s own minister Ram Jeevan Singh heading the department had submitted a detailed note of the scam to Lalu in August 1990 and demanded a CBI inquiry.

Singh was later removed as animal husbandry minister.

The CBI claimed that Lalu was aware of the scam as he had in June 1994 caught six forged allotment letters issued by the regional director of the animal husbandry department of Dumka.

The CBI alleged that Lalu stopped a vigilance inquiry and passed the order of inquiry only in February 1996 after much lapse of time when the scam had already surfaced.

The CBI said that Lalu had ordered the transfer of then senior department official B.N. Sharma in June 1993 who on a single day had withdrawn Rs 50 lakh from the treasury. Lalu cancelled Sharma’s transfer order in connivance with other accused, the agency alleged.

The prosecutor asked Lalu why he gave service extension to two key accused in the scam, R.K. Das and Shyam Bihari Sinha, on the recommendation of the then leader of Opposition Jagannath Mishra by ignoring established practice and norms of the government at a time when the finance department had raised objections.

The CBI claimed that Lalu maintained personal relationships with fodder-scam accused Dayanand Kashyap whom he appointed to a government post with cabinet minister status. The agency also claimed that Md Syeed and RK Rana, accused in the scam, were local guardians of Lalu’s children and the RJD chief accepted cash from other accused.

The court fixed January 20 as next date of hearing when the defence side will have to submit its list of witnesses.

The CBI had booked 170 accused in the fodder-scam cases, of which 111 are facing trial. The number of accused reduced as some died, some are still absconding or turned approvers.

The CBI produced 575 witnesses, and documents to substantiate the charges. “Now defence witnesses will be cross-examined as part of the trial,” said a CBI source.