The RJD President was taken to jail after being convicted by the special CBI court. 65-year-old Prasad was taken to the Birsa Munda Central Jail in Ranchi.
While coming out from the court, Yadav appeared calm and did not take any question as his car sped away to the jail located at Hotwar on the outskirts of Ranchi, adjacent to the National Games Village.
The former Bihar chief minister faces a maximum of 7 years in jail and will be immediately disqualified as a Lok Sabha member after he is sentenced.
The other 44 accused in the case, including several politicians and bureaucrats, were also convicted.
Seven accused were awarded three years of rigorous imprisonment and granted bail immediately, while the quantum of punishment for Prasad and 38 others will be announced on October 3.
This indicates that Prasad might get rigorous imprisonment for more than three years. If that is the case, Prasad can get bail only from the high court.
Prasad and others were charged with fraudulent withdrawal of around Rs. 38 crore from the exchequer on fake fodder bills in the 1990s, according to the Central Bureau of Investigation (CBI).
The money was withdrawn from the treasury located in Chaibasa, part of the then undivided Bihar. Lalu Prasad was Bihar's chief minister between 1990 and 1997.
The seven accused who were sentenced on Monday comprise two politicians, an IAS officer and four suppliers - three of whom are women.
Former state minister Vidhay Sagar Nishad, former Public Accounts Committee chairman Dhruv Bhagat, and former state labour secretary K Armugam are among those sentenced.
