During Gujral's stint as the Prime Minister, Lalu Prasad Yadav, who was the then Chief Minister of Bihar broke away from the Janata Dal and formed his own party, the Rashtriya Janata Dal.(RJD). Gujral had asked Lalu to resign when the CBI sought and secured the permission of the Bihar governor to prosecute Lalu in the fodder scam. Gujral served as the Prime Minister for a total period of over 11 months. One of the controversial decisions of his government was when it recommended President's rule in Uttar Pradesh, but had to finally back down when President K.R. Narayanan refused to sign the recommendation and sent it back to the government for reconsideration.
He did not contest the 1999 elections and left active politics. Apart from being the Prime Minister and the External Affairs Minister, he also served as a Minister in the Ministries of Communications and Parliamentary Affairs, Information & Broadcasting, Works & Housing, Planning and Ministry of External Affairs.
Inder Kumar Gujral passed away on November 30th 2012 in Medanta Hospital, Gurgaon (Haryana) of multiple organ failure, after being diagnosed with a lung infection.