The Supreme Court Today (April 8th) quashed the money laundering case against former IAS officer Anil Tuteja and his son Yash in the alleged Rs 2,000 crore liquor scam in Chhattisgarh, saying there were no proceeds of crime.
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NEW DELHI: The Supreme Court of India today, quashed the money laundering case against Anil Tuteja, a former Indian Administrative Service (IAS) officer, and his son Yash, linked to an alleged Rs 2,000 crore liquor scam in Chhattisgarh.
The Court, led by Justices Abhay S Oka and Ujjal Bhuyan, concluded that the case could not proceed due to the absence of “proceeds of crime,” a fundamental element required for a charge under the Prevention of Money Laundering Act (PMLA).
The bench clarified,
“As there is no scheduled offence, there cannot be any proceeds of crime as defined under clause 2(u) of the PMLA. If there is no proceeds of crime, the offence under PMLA is not made out.”
This ruling emphasizes the necessity of a direct link between the alleged criminal activity and the procurement of financial gains resulting from it, which forms the basis of any money laundering charge.
Despite this setback, the Enforcement Directorate (ED), represented by Additional Solicitor General SV Raju, hinted at the possibility of initiating a new complaint against the Tutejas based on additional evidence gathered during their investigation. However, the Supreme Court stated that it would not interfere with any new proceedings that the ED might commence.
The controversy around this case heightened when the ED labelled Anil Tuteja as the “kingpin” of an illicit liquor distribution network in Chhattisgarh, as outlined in their prosecution complaint (akin to a chargesheet) submitted to the special PMLA court.
This case stems from a 2022 charge sheet by the Income Tax Department, filed in Delhi, which accused a syndicate of high-level officials, private individuals, and political figures of generating over Rs 2,000 crore in illegal funds through the sale of liquor between 2019 and 2022.
The allegations further detailed that bribes were systematically collected from distillers for each case of liquor procured from the Chhattisgarh State Marketing Corporation Limited (CSMCL) and that country liquor was sold without proper documentation. Additionally, it was alleged that these bribes facilitated a cartel among distillers, allowing them a fixed market share.
In previous court interactions, the Supreme Court had directed the ED to provide the Enforcement Case Information Report (ECIR) and the First Information Report (FIR) that underpinned the lodged complaint. The Court had also noted the Tutejas’ challenge to Section 50 of the PMLA in their writ petition, which permits the ED to summon individuals, though it refrained from entertaining this challenge based on a 2022 verdict that upheld the ED’s search, seizure, and arrest powers.
During the course of these proceedings, allegations surfaced from the then Congress-led state government in Chhattisgarh, accusing the ED of overreaching in its investigation efforts, including harassment of state officers and threats of property seizure.
This political backdrop adds a layer of complexity to the legal battles surrounding the alleged liquor scam, reflecting the intertwined nature of law enforcement, political interests, and administrative governance.
Click Here to Read Previous Reports on Liquor Scams
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