The Enforcement Directorate (ED) recently arrested Chaitanya Baghel, son of former Chief Minister Bhupesh Baghel, under Section 19 of the Prevention of Money Laundering Act (PMLA). This arrest followed raids conducted at the Baghel family residence in Bhilai and was linked to new evidence connecting Chaitanya to the proceeds of an alleged ₹2,100-crore liquor scam.
Officials stated that Chaitanya was uncooperative during the searches, which led to his immediate arrest. A significant police presence was reported outside the Bhilai home, where Congress supporters gathered to protest. The arrest coincided with Chaitanya’s birthday, a point Bhupesh Baghel highlighted while accusing the BJP-led Central government of political targeting and misuse of investigative agencies.
What Is the Chhattisgarh Liquor Scam About?
The scam involves a wide-ranging conspiracy to divert revenue meant for the state treasury during 2019 to 2022, when the Congress government was in power. Investigations reveal a well-organized network within the Excise Department, involving politicians, bureaucrats, and private contractors, manipulating the procurement, distribution, and sale of both country and foreign liquor to generate illegal profits.
Key elements of the scam include:
Illegal Commissions on Country Liquor: Suppliers allegedly paid up to ₹75 per case as commissions to continue operations through the Chhattisgarh State Marketing Corporation Limited (CSMCL). These commissions were collected centrally and distributed among senior officials and political leaders.
Manipulation of Bottle Holograms: The process of printing holograms for liquor bottles was reportedly rigged to favor certain firms. Fake duplicate holograms were used to sell unaccounted liquor via government outlets, bypassing official inventory and revenue records.
Off-the-Record Liquor Sales: A parallel supply chain operated where liquor was sold entirely for cash without documentation, diverting revenue from the state’s accounts.
Foreign Liquor License Manipulation: FL-10A licenses, allowing private vendors to sell foreign liquor, were allegedly distributed in exchange for kickbacks. The syndicate reportedly took a fixed 10% cut from each transaction.
Who Are the Main People Named in the Case?
The ED and Chhattisgarh’s Economic Offences Wing (EOW) have identified several key figures involved in the scandal:
Kawasi Lakhma: The former Excise Minister and senior Congress leader is accused of receiving bribes amounting to ₹2 crore monthly. A supplementary charge sheet filed in June 2025 details bribes totaling between ₹64 and ₹72 crore. Properties linked to him worth over ₹6 crore have been provisionally seized.
Anwar Dhebar: The brother of Raipur’s Mayor Aijaz Dhebar, alleged to be the middleman in the syndicate. Although previously arrested, the Allahabad High Court ruled his detention illegal. However, the investigation against him continues.
Anil Tuteja and Arunpati Tripathi: Senior bureaucrats accused of overseeing the manipulation of liquor licenses and supply chains.
Chaitanya Baghel: Arrested after the latest raids, he is suspected of being a recipient of illegal proceeds from the scam.
Vijay Bhatia: A businessman from Bhilai, arrested for allegedly coordinating the flow of illegal commissions.
An FIR filed in January 2024 named over 70 individuals and companies, including former Chief Secretary Vivek Dhand. The ED alleges the kickbacks were distributed following directions from the highest state political officials.
What Has Been Seized So Far?
During raids across 39 locations in March 2025, authorities recovered cash exceeding ₹90 lakh, along with gold, property documents, and digital evidence. The ED has also attached properties worth over ₹205 crore, including assets linked to Kawasi Lakhma and the Congress party office in Sukma. So far, four charge sheets have been filed, including one against Lakhma.
Political Reactions and Context
The arrest has sparked a strong response from the Congress party. Bhupesh Baghel accused the central government led by BJP of targeting opposition leaders using investigative agencies like the ED. Speaking outside his home in Bhilai, he said the arrest was a politically motivated attack timed to coincide with his son’s birthday, and vowed to fight the allegations.
The Congress party boycotted the Chhattisgarh Assembly session to protest the arrest and alleged that the Centre was misusing central agencies such as the ED, CBI, Income Tax, and DRI against opposition politicians.
Baghel also claimed the arrest was timed to divert attention from a scheduled assembly debate on environmental violations related to the Adani-linked Tamnar coal mining project. Earlier in July, he had supported local protests against deforestation in the area, which is operated by MAHAGENCO with the Adani Group as the mine developer.
Legal Background and Next Steps
The ED’s initial case, based on an Income Tax Department complaint, was quashed by the Supreme Court in 2024 due to procedural irregularities. Afterward, the Economic Offences Wing and Anti-Corruption Bureau filed a fresh FIR in January 2024, shortly after the BJP won the state elections.
The ED is expected to file additional charges and make further arrests as investigations continue. Meanwhile, parallel probes by the EOW and ACB are underway. Legal challenges related to procedural compliance, especially concerning arrests, could influence the case’s progress.
With several senior politicians, bureaucrats, and businessmen under scrutiny, the Chhattisgarh liquor scam remains a significant issue both legally and politically. The arrest of Chaitanya Baghel adds another layer to this ongoing high-profile investigation.
