Lalu Prasad is also facing trial in three more cases relating to the fodder scam, also known as "chara ghotala".
Lalu heard the sentencing from jail via video conferencing.
A special CBI court in Ranchi pronounced the quantum of punishment for Lalu a few minutes ago.
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He was sent to prison for five years on September 30, 2013.
The court also said if he fails to furnish the fine, his jail term would extend by six months.
Mishra and Janata Dal-United leader Jagdish Sharma were also convicted in the first fodder scam case and were awarded four years imprisonment each.
While quoting party's state president Ramchandra Purve, it is reported by the media sources that, Tejashwi Yadav, Leader of Opposition and Lalu's son, is likely to become the party's CM face for the 2020 Assembly post.
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A government spokesman declined to confirm that an email had been sent to families but said more details on the deal would be forthcoming.
Earlier today, while hearing the case, the judge said that 'an open jail is best for these people (convicts), as they also have experience of cow farming.
The trial in the case was completed on December 13 in the special CBI court and 10 days later, he was convicted on December 23. "But they should remember that we still have High Court and Supreme Court to appeal against the judgement by CBI court", said Tejashwi. The court had found his predecessor and former CM of Bihar Jagannath Mishra not guilty and acquitted him of all charges.
The verdict on Saturday came after two postponements of the pronouncement of the quantum of punishment after the court found the RJD chief guilty in December previous year. The conviction in this case pertains to embezzling of more than Rs89 lakh from the Deoghar Treasury between 1991 and 1994.
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