The Chhattisgarh High Court criticised the ED and EOW-ACB for a selective and inconsistent investigation in the multi-crore liquor scam, flagging unequal application of law while granting bail to Chaitanya Baghel.
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The Chhattisgarh High Court has sharply criticised the Enforcement Directorate (ED) and the State’s Economic Offences Wing–Anti-Corruption Bureau (EOW-ACB) for adopting a “selective and inconsistent approach” in the investigation of the multi-crore Chhattisgarh liquor scam, while granting bail to Chaitanya Baghel, son of former Chief Minister Bhupesh Baghel.
Justice Arvind Kumar Verma, while granting bail to Baghel in both Prevention of Corruption Act (PC Act) and Prevention of Money Laundering Act (PMLA) cases, observed that similarly or more seriously placed accused persons were not arrested despite warrants being issued against them.
In a strong indictment of the investigating agencies, the Court said:
“The selective invocation of coercive powers against Baghel, while similarly or more seriously placed persons remain at liberty, raises a legitimate concern regarding unequal application of law.”
The Court specifically pointed to the non-arrest of Lakshmi Narayan ‘Pappu’ Bansal, described as an alleged cash conduit in the liquor scam. Despite an open-ended arrest warrant being issued against him in the EOW case, Bansal remains at large.
Notably, his statements were repeatedly relied upon by both the ED and the EOW to implicate Chaitanya Baghel, even though Bansal himself was never taken into custody.
Calling the situation a “grave violation of law,” Justice Verma directed the Director General of Police (DGP), Chhattisgarh, to look into the matter and issue appropriate instructions to ensure such selective enforcement does not recur.
“Such selective application of the law glaringly reflects a ‘pick and choose’ approach, which is antithetical to the concept of fair and impartial investigation,”
the Court noted.
The High Court expressed surprise when the ED’s counsel stated that the agency may not have been aware of the arrest warrant issued against co-accused Bansal.
“Such an admission prima facie reflects a serious lapse in the investigation and lends credence to the grievance of selective prosecution,”
the Court said.
Granting bail to Chaitanya Baghel, the Court found no compelling justification for his arrest, especially when:
- The case largely rests on documentary evidence
- Custodial interrogation was not shown to be necessary
- The investigation was substantially complete
- Baghel was not named in the original FIR or in the five supplementary chargesheets
The Court also noted that 29 excise officials implicated in the case, including those allegedly more central to the scam, had already been granted bail.
Justice Verma held that the continued incarceration of Baghel would amount to pre-trial punishment, which violates Article 21 of the Constitution.
“In the absence of any material demonstrating a role graver than those already on bail, continued incarceration would be wholly unjustified,”
the order stated.
Given the voluminous evidence, a large number of witnesses, and the unlikelihood of an early conclusion of the trial, the Court ruled that Baghel could not be kept in jail indefinitely.
Background: Chhattisgarh Liquor Scam
The case relates to alleged irregularities in Chhattisgarh’s excise administration between 2019 and 2023, during which:
- Liquor procurement was allegedly cartelised
- Senior bureaucrats, politicians, excise officials, and private entities were involved
- Illicit proceeds are estimated at ₹2,161–2,500 crore
Two FIRs were registered by the EOW-ACB on January 17, 2024, followed by an ED case on April 11, 2024.
Chaitanya Baghel is accused of having links with alleged syndicate figures Anwar Dhebar and Trilok Singh Dhillon, and of handling cash commissions worth around ₹1,000 crore. He was arrested in July 2025 and has consistently denied all allegations.
While granting bail in both the corruption and money laundering cases, the High Court imposed strict conditions to ensure Baghel’s presence during trial and to prevent any misuse of liberty.
“This Court finds no compelling reason to curtail the applicant’s liberty any further,”
Justice Verma concluded.
Appearance:
For Baghel: Senior advocate N Hariharan with advocates Mayank Jain, Madhur Jain, Arpit Goel,Deepak Jain and Harshwardhan Parganiha
For the ED and the EoW/ACB: Senior advocate Mahesh Jethmalani, with advocates Ravi Sharma, Zoheb Hossain, Pranjal Tripathi and deputy advocate general Saurabh Kumar Pande
Case Title:
Chaitanya Baghel v. The State Of Chhattisgarh Through Economic Offences Wing (EOW) / Anti- Corruption Bureau (ACB)
MCRC No. 8224 of 2025
READ ORDER
Case Title:
Chaitanya Baghel v. Directorate Of Enforcement
MCRC No. 8716 of 2025
READ ORDER
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