The Rashtriya Janata Dal (RJD) leader's lawyer told Central Bureau of Investigation special judge: "The prosecution sanction granted by the governor is not valid as he did not take the cabinet approval for it."
"As the prosecution sanction was not proper, the entire legal procedure is wrong," Lalu Prasad's lawyer told reporters after concluding the arguments in the case.
The CBI countered the argument and told the court that the governor was competent to grant sanction.
After the conclusion of the arguments, the court is expected to fix a date for judgment.
The case is related to alleged fraudulent withdrawal of Rs.37.70 crore from Chaibasa district treasury, which now is part of Jharkhand. The 45 accused included Lalu Prasad and former Bihar chief minister Jagannath Mishra.
The scam in Bihar surfaced in 1996. Around 54 of the 61 cases were transferred to Jharkhand when it was carved out of Bihar in November 2000.
--IANS (Posted on 17-09-2013)