The directorate of enforcement (ED) has laid bare what it describes as a deeply entrenched and meticulously organised corruption racket within Chhattisgarh’s excise administration, alleging that a criminal syndicate siphoned off proceeds of crime worth about ₹2,883 crore between 2019 and 2023 by hijacking the state’s liquor policy and distribution system.
In a supplementary prosecution complaint filed on 26 December 2025 before the special court under the Prevention of Money Laundering Act (PMLA), ED detailed how senior bureaucrats, politicians and private liquor operators allegedly worked in tandem to subvert official controls, extort illegal commissions and run a parallel, off-the-books liquor economy. With the latest filing, the number of accused in the case has risen to 81, including 59 newly-arraigned individuals.
The prosecution complaint paints a picture of a conspiracy that cut across administrative and political hierarchies. Among bureaucrats, ED named Anil Tuteja, a retired officer from the Indian Administrative Service (IAS) and then joint secretary and IAS Niranjan Das, the then excise commissioner, as central figures who allegedly manipulated policy and ensured the syndicate’s uninterrupted functioning.
Arun Pati Tripathi, an Indian Telecom Service (ITS) officer and then managing director (MD) of Chhattisgarh State Marketing Corporation Ltd (CSMCL), is accused of being tasked with maximising illegal collections and coordinating Part-B operations. ED has also arraigned 30 field-level excise officers, alleging they facilitated the sale of unaccounted liquor in return for fixed per-case commissions.
On the political side, the agency has arraigned Kawasi Lakhma, the then excise minister, and Chaitanya Baghel, son of the former chief minister, alleging their involvement in granting policy assent and in acquiring or utilising proceeds of crime in business and real estate ventures. Saumya Chaurasia, then deputy secretary in the chief minister’s office, is described as a key coordinator who allegedly handled illicit cash flows and managed the posting of compliant officers.
The private arm of the syndicate, according to ED, was spearheaded by Anwar Dhebar and his associate Arvind Singh. Several liquor manufacturers, including Chhattisgarh Distilleries Ltd, Bhatia Wine Merchants and Welcome Distilleries, are accused of knowingly participating in the illegal manufacture of liquor and paying multiple layers of commission. Other facilitators allegedly handled cash collection and the supply of duplicate holograms.
According to ED, the syndicate generated illicit earnings through four distinct mechanisms.
Under Part-A, bribes were allegedly extracted from liquor suppliers on officially sold liquor by artificially inflating the 'landing price' paid by the state. These inflated costs, the agency says, were effectively passed on to the state exchequer, indirectly financing the kickbacks.
Part-B involved the manufacture and sale of unaccounted country liquor through government-run shops. This parallel supply chain allegedly used duplicate holograms and bottles procured in cash, allowing liquor to be sold without paying any excise duty or taxes.
Under Part-C, distillers were allegedly forced to pay annual cartel commissions to retain market share and secure operational continuity in the state.
In addition, ED says a new licence category, FL-10A, was introduced to extract commissions from foreign liquor manufacturers, with around 60% of profits allegedly diverted to the syndicate.
So far, nine key accused have been arrested under Section 19 of the PMLA, including Mr Tuteja, Mr Dhebar, Mr Tripathi, Mr Lakhma, Mr Baghel, Mr Chaurasia and Mr Das. While some of them are currently on bail, others remain in judicial custody.
ED has also issued multiple provisional attachment orders, seizing movable and immovable assets worth ₹382.32 crore. These include 1,041 properties linked to bureaucrats, politicians and private entities, among them the Hotel Vennington Court in Raipur and numerous assets belonging to the Dhebar and Baghel families.
In a separate but related action, ED’s Raipur zonal office provisionally attached assets worth ₹38.21 crore belonging to Mr Das and 30 other excise officials. The attached properties include 78 immovable assets such as luxury bungalows, flats, commercial spaces and agricultural land, along with 197 movable assets comprising bank balances, fixed deposits, insurance policies, equity shares and mutual fund investments.
The agency alleged that Mr Das alone acquired over ₹18 crore in proceeds of crime, receiving a monthly bribe of around ₹50 lakh for facilitating the scam. Collectively, the 31 excise officials are said to have derived proceeds of crime worth ₹89.56 crore.
ED says its investigation revealed that senior excise officials effectively ran a parallel excise system that bypassed state warehouses and controls, allowing illicit liquor to move directly from distilleries to government shops. Each excise officer allegedly received a fixed commission of ₹140 per case for permitting the sale of unaccounted liquor in their jurisdiction.
The probe was initiated based on a first information report (FIR) registered by the anti-corruption bureau (ACB) and economic offences wing (EOW) at Raipur, under provisions of the IPC and the Prevention of Corruption Act. According to ED, the scam resulted in a massive loss to the state exchequer and a corresponding illegal enrichment of those involved.
Describing the latest attachments as emblematic of 'deep-rooted complicity', the agency says the case exposed how officials entrusted with safeguarding public revenue allegedly became key enablers of one of the largest excise frauds uncovered in the state.
