Chhattisgarh HC pulls up EOW over ‘grave violation’, directs DGP probe as Chaitanya Baghel gets bail in liquor scam case

RAIPUR: The Chhattisgarh high court has granted bail to Chaitanya Baghel, son of former Chief Minister Bhupesh Baghel, in a money laundering case linked to the alleged liquor scam in the state, underscoring that continued incarceration must meet the constitutional test of necessity and proportionality and cannot be punitive in nature. The HC on Friday granted bail to Chaitanya in the alleged Rs 2,833-crore liquor scam. While passing the order, the court pulled up the Economic Offences Wing (EOW) for failing to arrest a "permanent wanted" accused and allowing him to escape after recording his statement, terming it a "grave violation of law."

Justice Arvind Kumar Verma directed the Director General of Police (DGP) to investigate the matter and ensure such lapses do not recur. Chaitanya Baghel, who was arrested by the Enforcement Directorate (ED) over five months ago, is expected to be released from jail on Saturday.

The court noted that the EOW had relied on the statement of a wanted accused, Lakshminarayan Bansal, without executing the permanent warrant issued by the Special Court. "Despite the fact that a permanent warrant... was available to the Investigating Officer, he merely recorded the statement of the co-accused LNB, without effecting his arrest and let him escape," Justice Verma observed.

Regarding the ED case, the High Court stated that the central agency failed to provide evidence showing direct involvement of the applicant. The judge noted that the allegations were primarily based on statements recorded under Section 50 of the PMLA and "broad assertions" rather than concrete acts.

"The material relied upon by the Enforcement Directorate does not disclose any document, official communication, financial instrument, bank account, or property standing in the name of the applicant which would, by itself, demonstrate direct involvement in the generation of proceeds of crime," the order read. The court further highlighted the absence of documentary evidence, such as digital communications or financial trails, to prove Chaitanya exercised control over procurement or cash collections.

Chaitanya Baghel was arrested on 18 July 2024. He moved the High Court in October after special courts rejected his bail pleas. On 22 December last year, the EOW filed a chargesheet alleging he benefited by Rs 200–250 crore from the scam between 2019 and 2022. The ED, in a supplementary complaint filed on 15 September, had claimed he handled nearly Rs 1,000 crore in illicit funds.

The case involves allegations of a criminal syndicate bootlegging alcohol to government shops and extorting illegal commissions in collusion with senior political and administrative figures. To date, 81 individuals have been chargesheeted, including former excise minister Kawasi Lakhma, former deputy secretary Saumya Chaurasia, and Anwar Dhebar. Other prominent names include former IAS officer Anil Tuteja and retired IAS officer Niranjan Das.