ED Unearths Chhattisgarh Liquor Scam Under Previous Congress Government, Arrests Former Excise Minister Kawasi Lakhma

The Enforcement Directorate (ED) on Wednesday (15 January) arrested the former Chhattisgarh Minister, who held the Excise portfolio under the Congress government led by Bhupesh Baghel, Kawasi Lakhma.

The Congress member of the legislative assembly (MLA) was arrested in connection with an alleged liquor 'scam', which generated around Rs 2,161 crore in illicit funds as per the ED's estimate.

The central agency reported on Monday that the high-ranking Congress leader was alleged to have regularly received a significant cash sum, derived from the proceeds of an assumed liquor scam.

According to the ED, Lakhma, as the former excise minister in the previous Congress government, was the primary beneficiary of the proceeds from criminal activities.

The probe by the central agency into the alleged liquor fraud, spanning from 2019 to 2022, revealed that unlawful kickbacks were produced using several illicit methods under Chhattisgarh State Marketing Corporation Limited (CSMCL).

The central agency has stated that distillers had to pay bribes for every "case" of liquor they sold to the CSMCL, the state entity in charge of buying and selling alcohol.

The ED alleged that another way of creating illicit gains was through the sale of unrecorded "kaccha (off-the-books)" country liquor. It confirmed that the illicit alcohol was solely distributed via government-operated stores.

They pointed out that none of the earnings from these sales were contributed to the state treasury, but instead, they were kept by the syndicate, Hindustan Times reported.

The distillers were bribed to facilitate the formation of a cartel with a predetermined market share, as well as to individuals participating in the international liquor sector.

The information was disclosed two days subsequent to the Enforcement Directorate's (ED) Raipur unit carrying out search operations at seven sites throughout Raipur, Dhamtari, and Sukma districts, related to the liquor scam, in accordance with the Prevention of Money Laundering Act (PMLA) 2002.

On 28 December, the ED executed a raid at the residential locations of Kawasi Lakhma, a Congress MLA with six terms under his belt, including the residences of his son Harish Lakhma and other closely linked individuals.

The investigation resulted in the unearthing of proof that indicated Lakhma had employed the cash generated from criminal activities during the pertinent time frame. Numerous electronic gadgets, thought to hold condemning data, were likewise confiscated.

Previous inquiries uncovered that the alcohol syndicate, headed by Anwar Dhebar, Anil Tuteja and others, was functioning in Chhattisgarh. In this case, an attachment order valued at Rs 205 crore has been implemented.

Up to this point, five people have been taken into custody. A Prosecution Complaint, as well as two additional charge sheets, have been submitted. The specialized PMLA court in Raipur has already acknowledged the issue.