Bail Granted to Former Chhattisgarh Excise Commissioner in UP Liquor Scam Case by Allahabad High Court

In a significant relief for the former Excise Commissioner of Chhattisgarh, Niranjan Das, the Allahabad High Court has granted him bail in connection with a case registered in Uttar Pradesh linked to the alleged ₹2,161 crore liquor scam. Presided over by Justice Vikram D. Chauhan, the court underscored the fundamental principle that " bail is a rule, and jail is an exception " while addressing the complex allegations involving inter-state economic offences .

The Genesis of the Case

The legal entanglement of Niranjan Das stems from his tenure as the Excise Commissioner of Chhattisgarh, where he was accused of orchestrating an excise policy and tendering process that allegedly benefited M/s Prizm Holography Security Films Pvt. Ltd. The Uttar Pradesh authorities initiated an FIR following information provided by the Directorate of Enforcement, alleging that the holograms used in the Chhattisgarh liquor scam were manufactured in Noida, Uttar Pradesh.

The applicant had previously been arrested in connection with the main FIR registered by the State Economic Offences Wing in Raipur and had subsequently secured bail from the Supreme Court of India in May 2026 for both the predicate offences and the Prevention of Money Laundering Act (PMLA) charges.

Arguments Across the Bar

Counsel for the applicant contended that the current UP-based case is an extension of the primary Chhattisgarh investigation for which he was already granted bail. It was argued that the chargesheet had been filed, detailing a list of 22 witnesses, making the completion of a trial a long-term prospect. Furthermore, the defense highlighted that co-accused individuals, including Arunpati Tripathi, had already been released on bail.

Conversely, the State’s Additional Advocate General opposed the application, asserting that the manufacturing of holograms within the jurisdiction of Uttar Pradesh constitutes a distinct criminal offence, separate from the core scam in Chhattisgarh. They emphasized the applicant's criminal history, arguing that it should be weighed heavily against any release.

Legal Analysis and Judicial Reasoning

Justice Vikram D. Chauhan, while deliberating on the bail plea, analyzed the necessity of pre-trial detention. Relying on settled precedents, including the landmark cases of Ash Mohammad v. Shiv Raj Singh and Prabhakar Tewari v. State of U.P. , the Court observed that criminal antecedents alone cannot function as a bar to personal liberty.

The Court noted that the State failed to provide material evidence suggesting the applicant poses a flight risk, or that he would engage in witness intimidation or tamper with evidence. Crucially, the Court recognized the jurisdictional reality that the main nexus of the crime resided in Chhattisgarh, where the applicant had already been cleared for interim release by the Apex Court.

Key Observations

Highlighting the importance of judicial liberty, Justice Chauhan remarked:

"It is settled principle of law that the object of bail is to secure the attendance of the accused at the trial . No material particulars or circumstances suggestive of the applicant fleeing from justice or thwarting the course of justice... have been shown by learned AGA for the State."

Regarding the argument over the applicant's history, the court articulated:

"If the accused is otherwise found to be entitled to bail , he cannot be denied bail only on the ground of criminal history, no exceptional circumstances on the basis of criminal antecedents have been shown to deny bail to accused."

Implications of the Decision

The Allahabad High Court’s order serves as a reminder that procedural rights remain paramount even in complex, multi-state economic fraud cases. By granting bail to Das, the Court reaffirmed that the investigative machinery must justify continued detention with concrete evidence, such as the potential to subvert justice, rather than relying on the severity of the charges alone.

Niranjan Das is now set to be released subject to stringent conditions, including the requirement to cooperate with the ongoing trial proceedings, refraining from tampering with evidence, and maintaining his presence before the trial court as mandated.