Chhattisgarh HC defers hearing on Chaitanya Baghel’s plea, ED to file reply in two weeks

Raipur, Aug 12 The Chhattisgarh High Court on Tuesday adjourned the hearing on a petition filed by Chaitanya Baghel, son of former Chief Minister Bhupesh Baghel, in connection with the multi-crore liquor scam and money laundering case.

A single bench of Justice Arvind Kumar Verma granted the Enforcement Directorate (ED) two weeks to file its reply, postponing the next hearing accordingly.

Chaitanya Baghel, who was arrested by the ED on July 18 from his residence in Bhilai, has been in judicial custody for the past 24 days. His arrest followed fresh raids and the recovery of financial documents allegedly linked to illicit transactions.

The ED claims Baghel played a key role in laundering over Rs 1,000 crore of “proceeds of crime” generated through the liquor syndicate, and that Rs 16.7 crore was funnelled into real estate projects to disguise the origin of the funds.

In his petition before the High Court, Chaitanya has challenged the legality of his arrest, terming it “unconstitutional” and alleging procedural violations by the ED under the Prevention of Money Laundering Act (PMLA).

The Supreme Court had earlier dismissed his plea for relief and directed him to approach the High Court for a remedy.

The liquor scam, which allegedly operated between 2019 and 2022 during the Congress-led government, is estimated to have caused losses exceeding Rs 2,100 crore to the state exchequer.

The ED has accused a network of bureaucrats, politicians, and businessmen of orchestrating the scam, with instructions allegedly coming from the “highest political executives” of the state.

Several high-profile arrests have already been made, including former Excise Minister Kawasi Lakhma, a businessman, an ex-IAS officer and an ITS officer.

The FIR filed by the Economic Offences Wing in January 2024 named over 70 individuals and entities.

Bhupesh Baghel has publicly condemned the ED’s actions, alleging political vendetta and misuse of Central agencies to target Opposition leaders.

He has, however, affirmed his faith in the judiciary and pledged full cooperation with the investigation.

The next hearing in the High Court is expected to take place in the last week of August. Bhupesh Baghel and Chaitanya Baghel are accused in the alleged liquor scam of Chhattisgarh.

The ED has considered Chaitanya Baghel as the mastermind of this scam.

The alleged illegal syndicate operated through the Chhattisgarh State Marketing Corporation Limited (CSMCL), taking bribes from liquor distillers and awarding them market share in return. Off-the-books sales of country liquor through government shops, manipulation of FL-10A licenses for foreign liquor trade, and cartel-like market practices were allegedly used to launder massive proceeds of crime.

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