How Bhupesh Baghel got entangled in 4,000 crore liquor scam? Why is ED targeting former Congress CM

Former Chhattisgarh Chief Minister Bhupesh Baghel is in increasing trouble as the Enforcement Directorate (ED) widens its probe into the state's suspected liquor scam. On Monday, March 10, ED officials conducted raids at 14 premises in Durg district, including the homes and properties of Bhupesh Baghel and his son, Chaitanya Baghel. The searches are part of a continuing investigation into the huge financial irregularities in the liquor business in the state.

Allegations against Chaitanya Baghel

As per ED sources, Chaitanya Baghel is said to have taken illicit funds amounting to the scam. During the investigation, it has come to light that almost ₹2,161 crore was allegedly misappropriated in fraudulent ways, with the worth of the liquor scam now placed at around ₹4,000 crore. New evidence in the case has made ED expand its probe.

Past arrests and expanding investigations

This new crackdown follows almost a month after the Excise Minister-turned-politician Kawasi Lakhma was arrested in January. After his arrest, the investigation widened to cover Bhupesh Baghel and his relatives. An ED official disclosed that the raids were on properties linked to Baghel, his son Chaitanya, and the main aides like Lakshmi Narayan Bansal, alias Pappu Bansal.

ED's probe since 2023

The ED initiated the probe into Chhattisgarh's liquor scandal in 2023 following two liquor units' petitions filed in the High Court, seeking alleged irregularity in the liquor procurement process by the state government. Investigations point to a cluster of distillery owners and a coterie of government functionaries conspiring to result in an estimated loss of ₹3,800 crore to the state exchequer.

Role of Government in Liquor Business Chhattisgarh has a state-run liquor retail system, with 672 government-owned liquor shops collecting around ₹28-32 crore in daily revenue. Earlier, there were no private liquor outlets in the state. But a strong syndicate was said to have manipulated this system, distributing unregistered and unauthorized liquor through a complex web of traders, politicians, and bureaucrats.

Important arrests and ED's response

During the investigation, ED arrested special secretary in the Excise Department Arun Pati Tripathi, who was reportedly at the forefront of changing liquor policies to favor the syndicate. The agency also questioned two senior IAS officials, Anil Tuteja and Ranu Sahu, both of whom have been holding important administrative posts in the state.