Chhattisgarh Liquor Scam: Supreme Court Orders ED To Not Take Coercive Measures Against Petitioners Including The Tutejas

The Supreme Court has directed the Enforcement Directorate to temporarily hold off taking action in the money laundering case related to the Chhattisgarh liquor irregularities.

This oral remark was made by the top court while addressing various pleas concerning the same case.

In relation to the Chhattisgarh liquor irregularities case, the Supreme Court has ordered the ED not to take coercive measures against the petitioners, including Anil and Yash Tuteja, in the money laundering matter.

The court also emphasized that the probe agency should refrain from taking any action at this time.

During the hearing of a group of petitions, justices Sanjay Kishan Kaul and Sudhanshu Dhulia issued interim directions.

Petitioner's side was represented by senior advocates Kapil Sibal and Abhishek Manu Singhvi, while Additional Solicitor General SV Raju appeared on behalf of the Enforcement Directorate.

During the previous hearing, the petitioner's counsel argued that the alleged offences under the Income Tax Act have not been taken into cognizance by the competent court.

One of the pleas was filed by IAS Anil Tuteja and his son Yash Tuteja, with advocate-on-record Malk Manish Bhat representing them.

Yash Tuteja has challenged the validity of Section 50 and Section 63 of the Prevention of Money Laundering Act, 2002 ("PMLA").

He argues that these provisions, which allow Officers of the Directorate of Enforcement to summon individuals and require them to speak the truth in their statements, are in violation of Article 20(3) and 21 of the Constitution of India.

A petition has been filed to cancel the summons issued to Anil Tuteja under Section 50 of the Prevention of Money Laundering Act, 2002 by the Enforcement Directorate.

Karishma and Anwar Dhebar have also filed a plea through their advocate, Malak Manish Bhatt. Siddharth Singhania, one of the petitioners, has approached the court with the help of advocate Aljo K Joseph.

The Enforcement Directorate is currently investigating a liquor scam that took place between 2019 and 2022. It is alleged that corruption occurred in multiple ways, including the collection of bribes from distillers for each case of liquor procured by the CSMCL.

According to the investigation conducted by the Enforcement Directorate, Arun Pati Tripathi, under the influence of Anwar Dhebar, manipulated the liquor system in Chhattisgarh to promote corruption within the department.

Tripathi conspired with his colleagues to make policy changes and awarded tenders to associates of Anwar Dhebar, ensuring maximum personal gains.

The Enforcement Directorate has alleged that despite holding the position of a senior ITS Officer and MD of CSMCL, he went against the principles of any State Excise Department. It is claimed that he used the State-run shops to sell unaccounted kacha liquor.

According to the Enforcement Directorate, his actions resulted in significant losses to the State Exchequer. The beneficiaries of the Liquor Syndicate allegedly received over Rs 2,000 crore in illegal proceeds of crime, with the accused also receiving a substantial share of this loot.

The official statement states that his actions violated the very purpose of CSMCL, which is to increase the State's revenue and provide quality controlled liquor to citizens. Instead, he prioritized his personal illegal gains.

As part of their investigation, the Enforcement Directorate conducted search operations in Raipur, Bhilai, and Mumbai.

These searches led to the discovery of 53 acres of land in Naya Raipur, valued at Rs 21.60 crore. It is alleged that this land was acquired by Anwar Dhebar using the proceeds of crime in the name of a joint venture (JV).

According to an official statement, this property was acquired through a series of transactions in the name of an associate, using proceeds from criminal activities obtained from an FL-10A licensee.

The Enforcement Directorate recently conducted search proceedings and confiscated ₹20 lacs in cash and several incriminating documents.

During searches in Mumbai, undisclosed investments amounting to approximately Rs 1 crore were discovered with a Share trading firm registered under the names of Arvind Singh and Pinki Singh (wife of Arvind Singh).

These investments have been frozen under the Prevention of Money Laundering Act (PMLA).

The Enforcement Directorate previously froze Fixed Deposits worth Rs 27.5 crore belonging to Trilok Singh Dhillon. Additionally, they seized jewellery worth Rs 28 crore from the residence of a Country Liquor Distiller.