With Bihar heading into a crucial Assembly election, it’s instructive to revisit the turn of events that led to Lalu Prasad’s exit as Chief Minister — an event that not only destroyed his prime ministerial ambitions, but led to the formation of the Rashtriya Janata Dal (RJD), one of the strongest regional forces in the state.
The year was 1996. With Janata Dal president S R Bommai’s name coming up in the hawala scandal — diaries of the Jain brothers had indicated payoffs to politicians who were identified only by their initials — the party named Lalu Prasad, then Chief Minister of Bihar, as party chief.
It was also the time of great political instability in the country — the Congress was in decline. Wracked by factionalism and corruption charges, the party had faced setbacks in state elections and was losing ground to regional parties and the BJP. Lalu sensed an opportunity for himself — he began to dream of becoming Prime Minister.
Lalu’s optimism
In his soon-to-be-released book, Neele Aakash Ka Sach, journalist Amarendra Kumar, the Jharkhand state bureau chief of Dainik Bhaskar, quotes Lalu as saying, “Hawala ne Janata Dal ko hamare hawale kar diya (the hawala scandal has handed over the Janata Dal to me).”
However, Lalu’s optimism proved short-lived.
The fodder scam came to light in early 1996, and Lalu Prasad’s name cropped up among the accused. With that, his relatively clean image until then — given that his name had not come up in the Jain diaries — took a beating.
The fodder scam involved charges that officials of the Animal Husbandry Department of then unified Bihar embezzled public funds to the tune of Rs 950 crore through fraudulent withdrawal of government money on the pretext of purchasing livestock fodder.
In February 1996, Lalu gave an interview to Kumar, in which he said that the CBI should get a free hand in investigating the hawala scam, but added that since the Bihar government under him was already active in taking action on those behind the fodder scam, a CBI inquiry was not required into the latter.
“Those named in the hawala scam were frustrated that Lalu Yadav has not been named… So, they are making allegations against me. Had I been guilty, the public would not have spared me, but I have increased the stature of Bihar…Now I will take on the fodder mafia and set things right,” Lalu said in the interview.
Lalu added that he would be willing to become Prime Minister after the coming elections, if people so desired.
Deve Gowda’s gain
The 1996 Lok Sabha elections — held in April and May, a few months after the fodder scandal came to light — threw up a fractured verdict. Atal Bihari Vajpayee’s government lasted merely 13 days and he lost the vote of confidence.
But the fodder scam meant Lalu had lost his chance. Instead, H D Deve Gowda became Prime Minister. The CBI inquiry into the fodder scam that Vajpayee ordered continued under Deve Gowda, Lalu’s colleague in the Janata Dal who did not quite like him.
It’s a move that Lalu didn’t take too kindly to. Kumar writes that it was Lalu who was responsible for the replacement of Deve Gowda with I K Gujral on April 21, 1997, miffed as he was on the CBI probe going on in full swing.
Lalu had convinced Congress president Sitaram Kesari — with whom he was close — to withdraw support to Deve Gowda, Kumar writes.
On June 17, 1997, Bihar governor A R Kidwai gave his approval for the filing of a chargesheet against Lalu.
Pressure mounted on Lalu from within the Janata Dal because of the allegations, and on July 5, 1997, he split the party to form the RJD.
A successor is chosen
However, he realised that he would have to step down as Chief Minister. On July 25, 1997, he called RJD MLAs to his residence to choose his successor.
A beaming Kanti Singh was chosen as the successor and garlanded, and news agencies started to flash the news. Lalu then decided to go to his room and call up then Prime Minister Gujral to inform him about the legislature party’s decision.
“Why not Rabri Devi?” a surprised Gujral is said to have asked Lalu when informed about Kanti Singh.
“Only if Rabri Devi is Chief Minister will your rule be safe,” Gujral is said to have told Lalu.
Lalu, Kumar recalls, immediately understood, and announced the name of his wife Rabri Devi as the next Chief Minister.
The writer is Deputy Associate Editor, The Indian Express
Lalu Prasad Yadav and Rabri Devi (PTI Photo/Archive) 
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