ED flags ₹2,883-crore liquor scam in Chhattisgarh involving bureaucrats and politicians

The Enforcement Directorate (ED), in its supplementary prosecution complaint, has detailed what it described as a “massive corruption” in the Excise Department of Chhattisgarh between 2019 and 2023, allegedly resulting in the generation of Proceeds of Crime worth about ₹2,883 crore.

The agency has named 59 new accused persons, taking the total number of accused in the case to 81.

According to the ED, its investigation has uncovered a well-organised criminal syndicate that subverted the State’s liquor policy for personal gain through a multi-layered mechanism involving illegal commissions and the sale of unaccounted liquor.

The syndicate allegedly generated illegal earnings through four distinct channels. “Bribes were charged from liquor suppliers on official sales, facilitated by artificially increasing the ‘landing price’ paid by the State, effectively financing the bribes through the State exchequer,” the agency said.

Another method involved a parallel system to sell “off-the-books” country liquor through government shops using duplicate holograms and bottles procured in cash, bypassing excise duties and taxes. Annual bribes were also allegedly paid by distillers to maintain market share and secure operational licences in the State.

“A new licence category was introduced to extort commissions from foreign liquor manufacturers, with 60% of profits diverted to the syndicate,” the agency said.

Alleging a deep-rooted conspiracy across the then State’s administrative and political hierarchy, the ED said those arraigned in the latest complaint include senior bureaucrats such as retired Indian Administrative Service (IAS) officer Anil Tuteja, then Joint Secretary, and IAS officer Niranjan Das, then Excise Commissioner. They were allegedly instrumental in manipulating the policy and ensuring the syndicate’s unhindered operation.

Arun Pati Tripathi, Indian Trade Service officer and Managing Director of the Chhattisgarh State Marketing Corporation Limited, was allegedly tasked with maximising illegal collections and coordinating “off-the-books” country liquor sales.

“Additionally, 30 field-level excise officers, including Janardan Kaurav and Iqbal Ahmed Khan, were arraigned as accused for facilitating the sale of unaccounted liquor in exchange for fixed per-case commissions,” the ED said.

The political executives named in the case include “high-ranking political figures, including then Excise Minister Kawasi Lakhma and Chaitanya Baghel (son of the then Chief Minister)”, for their alleged role in granting policy approvals and acquiring or using proceeds of crime in business and real estate ventures. Saumya Chaurasia, then Deputy Secretary in the Chief Minister’s Office, was allegedly identified as a key coordinator for handling illicit cash and managing the placement of compliant officers.

The syndicate was allegedly spearheaded by Anwar Dhebar and his associate Arvind Singh. Private manufacturers, including Chhattisgarh Distilleries Limited, Bhatia Wine Merchants and Welcome Distilleries, were alleged to have knowingly participated in the illegal manufacture of liquor and payment of commissions.

“Facilitators such as Siddharth Singhania (cash collection) and Vidhu Gupta (duplicate hologram supply) were also found to be key private actors in the said fraud,” the agency said.

The ED has so far arrested nine individuals, including Anil Tuteja, Arvind Singh, Trilok Singh Dhillon, Anwar Dhebar, Arun Pati Tripathi, Kawasi Lakhma, Chaitanya Baghel, Soumya Chaurasia and Niranjan Das.

The total attachment in the case currently stands at ₹382.32 crore. “These attachments include 1,041 properties linked to bureaucrats, politicians and private entities, such as Hotel Vennington Court in Raipur and hundreds of assets belonging to the Dhebar and Baghel families,” the agency said.

The ED has also attached properties worth ₹68.16 crore belonging to Chhattisgarh Distilleries, Bhatia Wine Merchants and Welcome Distilleries, taking the cumulative attachment against the three distillers to ₹96.55 crore.

The agency alleged that the syndicate increased the “landing rates” or procurement prices paid by the government to these distilleries. In return, the distillers allegedly paid illegal commissions ranging from ₹75 to ₹125 per case.

Between April 2019 and June 2022, around 60,50,950 cases of “off-the-book” liquor were allegedly supplied to the syndicate.

The ED has also attached assets worth about ₹38.21 crore belonging to Niranjan Das and 30 other excise officials.

The investigation under the Prevention of Money Laundering Act is based on a First Information Report registered by the Raipur Anti-Corruption Branch.