PM talks tough, may sack Laloo

NEW DELHI, July 24: With the High Court rejecting Laloo Prasad Yadav's bail plea in the fodder scam, Prime Minister I K Gujral indicating p...

NEW DELHI, July 24: With the High Court rejecting Laloo Prasad Yadav’s bail plea in the fodder scam, Prime Minister I K Gujral indicating possible action in the “new situation” and the CBI drawing up a contingency plan for his arrest, the situation in Bihar has clearly reached a flashpoint.Gujral is making last-ditch efforts to persuade the Bihar chief minister to quit. He chose not to dismiss Yadav’s government tonight as the country is celebrating the election of President K R Narayanan.

The Prime Minister may seek a mandate of UF’s core committee before moving to dismiss an elected State government. At

today’s meeting the Cabinet felt that Laloo should be dismissed if he does not resign. Laloo has been given one more day to choose his successor and remain in the Front or face the consequences. Though he is planning to file an appeal against the Patna High Court order, his chances of success are few, as the apex court normally does not entertain bail applications unless there is a strong case. Union Home Minister Indrajit Gupta later today evening spoke to Bihar Governor A R Kidwai and CBI Director R C Sharma. While Kidwai may be sending a report on the latest situation in the State, R C Sharma was directed to prepare a contingency plan to arrest Laloo. Since the trial court has already taken cognizance of the charge-sheet against Laloo and may issue summons or warrants for his arrest, the CBI is preparing to activate its machinery without delay.

The CBI will prefer to act on the basis of the process issued by the designated court when it meets next. The agency had submitted the charge-sheet in the conspiracy case (RC 20(a)/96) relating to fraudulent withdrawals of Rs 37 crore from the treasury by AHD officials between 1993 and 1995.

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The Front’s core committee is meeting here tomorrow and it will be difficult for even the Dravida Munnetra Kazhagam to support Laloo now. The issue of the entry of the Rashtriya Janata Dal into the United Front and the continuance of the three RJD ministers in the Gujral government is likely to dominate the deliberations.

The issue of Insurance Regulatory Authority Bill, which is under discussion in Parliament, may also come up for a discussion because of the hardening of Left’s posture. The meeting, to be held at the Prime Minister’s residence, will discuss the Front’s choice for the Vice Presidential nominee. Rabi Ray, former Speaker of the Lok Sabha, Krishna Kant, Andhra Pradesh Governor, and Madhu Dandavate are among the names being mentioned for the post in UF circles. The names being mentioned in the Congress are of Pranab Mukherjee, Najma Heptullah, Mohammad Safi Qurashi, Mohasina Kidwai and B R Bhagat.