Chhattisgarh High Court Grants Bail to Chaitanya Baghel in ₹3,000 Crore Liquor Scam
Chhattisgarh High Court Grants Bail to Chaitanya Baghel
On Friday, the Chhattisgarh High Court provided bail to Chaitanya Baghel, son of former Chief Minister Bhupesh Baghel, in connection with two cases linked to an alleged ₹3,000 crore liquor scam. Bhupesh Baghel welcomed the court's decision, calling it a "victory for truth."
Saurabh Kumar Pandey, representing the Enforcement Directorate (ED), informed reporters that the court granted bail in two separate cases—one filed by the ED and the other by the state's Anti-Corruption Bureau/Economic Offenses Wing (ACB/EOW). Chaitanya was arrested by the ED in July last year as part of a money laundering investigation related to the alleged scam. Subsequently, while he was in custody, the ACB/EOW arrested him in September for their corruption case.
Court's Ruling on Bail Applications
Advocate Saurabh Kumar Pandey stated that a single bench led by Justice Arvind Kumar Verma approved Chaitanya's bail petitions concerning the cases filed by the ED and ACB/EOW. After hearing arguments, the High Court reserved its decision on December 12, 2025, and announced it on Friday.
Lack of Specific Evidence
In its ruling on the bail application concerning the ED's case, the High Court noted that the applicant's alleged involvement was significantly lesser compared to several senior accused who had already been granted bail. It pointed out that the alleged mastermind and primary beneficiaries, including Anwar Dheber, Anil Tutegia, Arvind Singh, Arunapati Tripathi, and Trilok Singh Dhillon, had previously received bail from the Supreme Court, and denying bail to the applicant would violate the principle of equality.
The High Court remarked that the investigation was largely documentary in nature and that Chaitanya had been in custody for an extended period. The single bench indicated that the evidence collected by the ED, including statements under the Prevention of Money Laundering Act (PMLA) Section 50 and financial and digital records, would be evaluated during the hearing, and this would not be the final assessment at the bail stage.
Court's Observations on Political Influence
While granting bail, the court acknowledged the ED's argument regarding the applicant's political influence but stated that the absence of specific evidence showing attempts to intimidate witnesses or obstruct justice could not solely justify denying bail. The single bench emphasized that the seriousness of the charges alone does not warrant permanent incarceration, especially when the judicial process is expected to take years.
The High Court further noted that the evidence relied upon by the ED did not reveal any documents, official communications, financial instruments, bank accounts, or properties linked to the applicant that would demonstrate direct involvement in the crime's proceeds. It stated, "Although it was alleged that the applicant was at the 'top' of the syndicate, no contemporaneous documentary evidence was presented to indicate the applicant's control over purchasing decisions, commission rates, tender allocations, liquor transportation, or cash collection."
Issues with Investigation Procedures
In a separate order granting bail in the ACB/EOW case, the High Court criticized the investigation officer for failing to arrest Lakshmi Narayan Bansal, a co-accused, despite a permanent/open warrant issued by a special court. The High Court stated that the special court had issued a warrant against Bansal, which was known to the investigation officer, yet they only recorded his statement and allowed him to escape, constituting a serious violation of the law.
The High Court instructed the Director General of Police (DGP) to take note of this matter and issue appropriate orders to prevent such violations by police officials across the state. It clarified that its comments were limited to the bail applications' decisions and should not be interpreted as opinions on the merits of the case.
Conditions of Bail
While granting bail, the court imposed certain conditions, including the requirement to surrender any passport, if applicable, and to regularly appear before the trial court, along with filing an affidavit to assist in the swift resolution of the case. The High Court also stated that failure to cooperate or violation of conditions could result in the revocation of bail.
Bhupesh Baghel's Response
Bhupesh Baghel expressed his approval of the High Court's ruling, labeling it a 'victory for truth.' He remarked during a conversation with reporters, "Truth may be troubled, but it cannot be defeated. The High Court has provided significant relief. It is a matter of great joy that Chaitanya has been granted bail."
He alleged that Chaitanya was arrested based on the statement of Pappu Bansal, who is currently absconding. Baghel claimed, "I have always said that the central and state governments leave no stone unturned to harass us."
The Congress leader asserted that agencies like the ED, Central Bureau of Investigation (CBI), and Economic Offenses Wing (EOW) are being utilized to intimidate opposition leaders. He stated that the public now understands that the BJP-led central government targets opposition parties through investigative agencies. Baghel added, "Those who succumb to fear join their party or compromise, while those who do not are sent to jail. Our ancestors went to jail during the freedom struggle. If they were not afraid of the British, why should we fear them (the BJP)?"
Background of the Case
The ED arrested Chaitanya Baghel on July 18 in connection with the alleged scam. Prior to this, the state agency had arrested him on September 24 while he was already in custody. According to the ED, the alleged liquor 'scam' occurred between 2019 and 2022, during the tenure of the Congress government led by Bhupesh Baghel in Chhattisgarh.
The central investigative agency claimed that the alleged scam caused 'significant losses' to the exchequer and benefited a liquor 'syndicate.' The ED alleged that Chaitanya was the head of the 'syndicate' behind the liquor scam and managed nearly ₹1,000 crore obtained from the scam. The ACB/EOW claimed that Chaitanya managed high-level crime proceeds and received approximately ₹200-250 crore as his share. The state agency indicated that the total proceeds of crime from the alleged scam could exceed ₹3,500 crore.