Why Was Bhupesh Baghel’s Son Arrested By ED? The Chhattisgarh Liquor Scam Case Explained

Last Updated:July 18, 2025, 14:44 IST

The ED says Chaitanya Baghel was a suspected recipient of scam proceeds that allegedly generated over Rs 2,100 crore in illegal profits for a powerful liquor syndicate

ED was conducting raids at Ex-CM Bhupesh Baghel's residence since morning.

The Chhattisgarh liquor case probe has taken a dramatic turn with the Enforcement Directorate (ED) arresting Chaitanya Baghel, son of former Chief Minister Bhupesh Baghel, under Section 19 of the Prevention of Money Laundering Act (PMLA). The arrest followed fresh raids at the Baghel residence in Bhilai on Friday and was based on what officials said was new evidence linking him to proceeds from the alleged Rs 2,100-crore scam.

According to ED officials, Chaitanya was non-cooperative during the search, prompting his immediate arrest. A heavy police presence was seen outside the Bhilai residence, where several Congress workers gathered in protest. The arrest also happened to coincide with Chaitanya’s birthday—a fact highlighted by Bhupesh Baghel, who accused the BJP-led Centre of political vendetta and misuse of central agencies.

What Is the Chhattisgarh Liquor Scam Case?

The alleged Rs 2,100-crore liquor scam revolves around what the ED calls a “massive conspiracy" to siphon off revenue meant for the state exchequer between 2019 and 2022, during the Congress-led government’s tenure. According to investigators, a parallel network within the state’s Excise Department—comprising bureaucrats, political leaders, and private contractors—manipulated the procurement, distribution, and sale of both country and foreign liquor to generate illegal profits.

The ED alleges this was not a case of sporadic corruption, but a structured, state-wide liquor syndicate that operated with impunity, diverting funds through fake bottle holograms, manipulated licences, and off-the-book cash sales.

What Are The Main Allegations?

1. Illegal Commissions on Country Liquor: Liquor suppliers allegedly paid up to Rs 75 per case in commissions to continue operations through the Chhattisgarh State Marketing Corporation Limited (CSMCL). These commissions, the ED claims, were centrally collected and distributed to senior officials and political figures.
2. Use of Fake Holograms: Tenders for liquor bottle holograms were allegedly manipulated to benefit select firms. Duplicate holograms were printed and used to push unaccounted liquor through official outlets, bypassing inventory and revenue systems.
3. Off-the-Book Liquor Sales: A shadow supply chain allegedly operated from state-run shops where liquor was sold entirely in cash without record, diverting revenue from the state treasury.
4. Manipulation of Foreign Liquor Licences: The scam allegedly introduced FL-10A licences, allowing private vendors to sell foreign liquor in exchange for kickbacks. A fixed cut of 10 per cent per transaction was routed to the syndicate.

Who Are The Key Accused?

The ED and the Chhattisgarh Economic Offences Wing (EOW) have named several high-profile individuals:

• Kawasi Lakhma, former Excise Minister and senior Congress leader, is accused of receiving Rs 2 crore per month. A 1,200-page supplementary charge sheet filed on 30 June 2025 alleges bribes totalling Rs 64–72 crore. His assets worth Rs 6.15 crore have been provisionally attached.
• Anwar Dhebar, brother of Raipur Mayor Aijaz Dhebar, is said to have operated as the syndicate’s middleman. Though arrested earlier, the Allahabad High Court later ruled his arrest illegal. The case against him continues.
• Anil Tuteja, a former IAS officer, and Arunpati Tripathi, a senior Indian Telecom Service officer, allegedly oversaw key aspects of licensing and supply manipulation.
• Chaitanya Baghel, son of Bhupesh Baghel, was arrested following ED raids on July 12 and again on July 18. The agency claims he was a suspected recipient of scam proceeds.
• Vijay Bhatia, a Bhilai-based businessman, was arrested from Delhi for allegedly coordinating illegal commission flows.

The case has expanded rapidly: an FIR filed in January 2024 by the EOW and ACB named 70 individuals and companies, including former chief secretary Vivek Dhand. According to the ED, commissions were distributed “as per directions from the highest political executives of the state."

What Has Been Seized So Far?

• Over Rs 90 lakh in cash, large amounts of gold, property documents, and digital records were recovered during raids across 39 locations in March 2025.
• The ED has provisionally attached properties worth over Rs 205 crore, including real estate linked to Lakhma and the Congress office in Sukma.
• Four detailed charge sheets have been filed so far, including the most recent against Lakhma.

Political Fallout

The arrest triggered a strong political backlash from the Congress. Bhupesh Baghel accused the BJP-led Centre of orchestrating the ED action to target the Opposition. Speaking outside his Bhilai residence, he said: “To please their master, Modi and Shah have sent the ED to my house. We are not going to be scared or bow down… we will fight the battle of truth."

He added: “Nobody in any democracy in the world can give a birthday gift like Modi and Shah did. I will remember this for life."

Baghel also referred to a previous ED raid at his home that recovered Rs 33 lakh, saying no action had followed.

The Congress staged a boycott of the Chhattisgarh Assembly session on Friday in protest. The party alleged the Centre was using agencies like ED, CBI, IT, and DRI to suppress Opposition leaders.

Why The Timing Matters

Baghel alleged that the arrest was intended to distract from a scheduled debate in the assembly on environmental violations in the Adani-linked Tamnar coal mining project. He said: “Today is the last day of the session. We were set to raise the issue of trees being felled for Adani in Tamnar. Instead, Saheb has sent the ED to Bhilai Niwas."

Earlier this month, Baghel had visited Tamnar tehsil in Raigarh to support locals protesting deforestation. The mine in question was allotted to MAHAGENCO, with the Adani Group as the Mine Developer and Operator (MDO).

Legal Background

The ED’s original ECIR in the case was quashed by the Supreme Court in 2024, as it was based on a complaint from the Income Tax Department. Following this, the agency shared its findings with the EOW and ACB, who filed a new FIR in January 2024, shortly after the BJP defeated Congress in the state election.

What’s Next?

The ED is expected to file more charges and make further arrests. With a parallel probe by the EOW underway and court challenges continuing, legal complexities—especially around procedural lapses in arrests—could shape the direction of the case.

With senior politicians, bureaucrats, and business figures under investigation, and with the Opposition alleging targeted harassment, the Chhattisgarh liquor scam is set to remain both a legal flashpoint and a political talking point in the months to come.

Karishma Jain

Karishma Jain, Chief Sub Editor at News18.com, writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @kar...Read More

Karishma Jain, Chief Sub Editor at News18.com, writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @kar...

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