Chhattisgarh Liquor Scam Explained : How Politician-Bureaucrat- Drug Mafia Nexus Sucked Out The State's Money To Fill Their Personal Coffers

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In a major development that has sent shockwaves through Chhattisgarh’s political landscape, the Enforcement Directorate (ED) on  18 July, 2025, arrested Chaitanya Baghel, son of former Chief Minister Bhupesh Baghel, in connection with the massive ₹2,161-crore liquor scam. The arrest marks a turning point in the ongoing investigation, which has alleged deep-rooted corruption, illegal money laundering, and widespread abuse of power across political and bureaucratic circles.

Chaitanya was taken into custody under the Prevention of Money Laundering Act (PMLA) and presented before a special court in Raipur, which remanded him to ED custody for five days. According to the agency, he played a key role in laundering black money generated from an illegal liquor trade that allegedly flourished between 2019 and 2022, during the Congress-led government’s tenure.

What Is the Liquor Scam?

The Chhattisgarh liquor scam is one of the most significant corruption cases to emerge from the state, involving a vast network of politicians, bureaucrats, and businessmen. According to the Enforcement Directorate (ED), the alleged scam functioned like a parallel system of liquor trade operating entirely outside government control. Instead of legal revenues from liquor sales reaching the state treasury, the funds were siphoned off through a corrupt mechanism designed to enrich a select group of individuals. The ED has estimated that this illegal system caused a loss of ₹2,161 crore to the Chhattisgarh government.

The ED alleges that distilleries across Chhattisgarh were coerced into paying ₹75 per liquor case as a form of commission or bribe. This illegal payment system allegedly generated more than ₹319 crore. The money was reportedly routed through senior government officials, including retired IAS officer Anil Tuteja and Indian Trade Service officer Arun Pati Tripathi. Congress leader Anwar Dhebar is said to have played a supervisory role in this operation, ensuring the collection and distribution of the illicit funds.

Further, the scam involved selling liquor outside the official government distribution channels. This was accomplished by using fake holograms to disguise illegal liquor as licensed stock. The ED claims that this liquor never entered state warehouses but was delivered directly to liquor shops, where it was sold for cash. In 2022–2023 alone, about 400 trucks per month were allegedly used for these deliveries, generating an average of ₹3,000 per case in illegal revenue for the network.

The case also focused on the misuse of a specific licensing system known as FL-10A, which allowed selected companies—allegedly fronting for the syndicate—to acquire foreign liquor licenses at outdated rates. These companies then sold the liquor at current market prices, earning enormous profits. The ED claims this manipulation alone netted around ₹211 crore, with profits allegedly shared among political leaders connected to the operation.

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The ED’s investigation has led to multiple high-profile arrests. Anwar Dhebar, alleged to be the mastermind behind the entire scam, is the brother of senior Congress leader and former Raipur Mayor Aijaz Dhebar. Retired IAS officer Anil Tuteja, who formerly served as joint secretary in the Chhattisgarh government, is believed to have been a central figure in managing the flow of funds and facilitating the operations.

Arun Pati Tripathi, an ITS officer and former Managing Director of the Chhattisgarh State Marketing Corporation Ltd., allegedly oversaw the operational side of liquor distribution. Former Excise Minister Kawasi Lakhma was also arrested earlier this year. The ED alleges that he regularly received bribes in cash on a monthly basis. Another key figure, Laxmi Narayan Bansal—also known as Pappu—is accused of handling over ₹1,000 crore in scam proceeds.

Chaitanya Baghel’s Role and Arrest

Chaitanya Baghel has been accused by the ED of playing a significant role in laundering the scam’s proceeds. The agency claims he received ₹16.7 crore and used part of it to fund his real estate project, Vitthal Green, through his company Baghel Developers.

According to the ED, the project acted as a money-laundering front. While its official cost was shown as ₹7.14 crore, the actual construction was worth ₹13– ₹15 crore, with at least ₹4.2 crore allegedly paid in cash to contractors. In 2020, 19 flats were purchased by employees of liquor baron Trilok Singh Dhillon for ₹5 crore, which the ED believes was a move to disguise illicit funds. Additionally, a jewellery firm allegedly gave ₹4.5 crore as an unsecured loan to Chaitanya, with no interest paid — suggesting that it was not a genuine transaction but part of the laundering network.

The ED also pointed out that Saheli Jewellers, a flagged shell firm, gave ₹5 crore to Chaitanya’s company, and no repayments were made — a red flag for investigators.

Chaitanya’s name surfaced based on the confessional statement of Pappu Bansal, a key accused who claimed he collected black money from Anwar Dhebar and routed it through various intermediaries — including former Congress treasurer Ram Gopal Agarwal and one KK Srivastava — on Chaitanya’s instructions.

Chat records retrieved from Anwar Dhebar’s phone allegedly show Chaitanya actively coordinating transactions. The ED claims that Chaitanya was not a passive player but a central figure in this underground financial network.

Political Reactions and Protests

The arrest of Chaitanya Baghel sparked large-scale protests by Congress leaders and workers, who stormed the Chhattisgarh Assembly, forcing proceedings to be adjourned. Former Chief Minister Bhupesh Baghel condemned the arrest, calling it politically motivated and an attempt to target him and his party for opposing the Adani coal mining project in Raigarh.

He alleged that the arrest was made without any prior summons or questioning, and criticised the ED for acting solely on the statement of Pappu Bansal — an accused facing a non-bailable warrant who remains at large.

Chaitanya’s lawyer, Faisal Rizvi, maintained that his client was never summoned or named in any of the four previous charge sheets. He also noted that the first raid on Chaitanya’s residence took place only on March 10, 2025, well after the investigation had begun, asserting that the arrest lacked merit.

The political nature of the case has further deepened the controversy. Several arrested or investigated individuals are closely linked to the Congress party, which previously governed the state. While the BJP-led government has vowed to bring all offenders to justice, Congress leaders have accused the ruling party of using investigative agencies for political revenge.

As the case develops, it has exposed a vast corruption network and highlighted the close nexus between politics, bureaucracy, and business in Chhattisgarh’s liquor trade. The ED’s probe is ongoing and may reveal further details.

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The Enforcement Directorate (ED) registered an Enforcement Case Information Report (ECIR) in April 2024, based on an FIR filed by the Chhattisgarh Economic Offences Wing (EOW) and Anti-Corruption Bureau (ACB). In early 2025, the agency conducted raids at 14 locations, including the Baghel family’s residence in Bhilai.

Notably, this same residence had earlier been searched by the Central Bureau of Investigation (CBI) in connection with the Mahadev betting app case, adding to the controversies surrounding the Baghel family.

With Chaitanya Baghel now in custody, the ED is aiming to gather digital evidence, track money trails, and determine the full extent of the scam. However, sources suggest he has been uncooperative during questioning, refusing to disclose financial records or respond to inquiries about fund transfers.

The ED claims that ₹1,392 crore of the scam proceeds may have been funnelled to Congress leaders and their associates between 2019 and 2022. As the investigation widens, the case continues to draw national attention and raises critical concerns about governance, accountability, and the abuse of power in state-run systems. [Rh/VP]