CAV ORDER

The present applicant has preferred this application under Section 483 of the Bhartiya Nagrik Suraksha Sanhita, 2023 (pari materia to Section 439 of the Cr.P.C., 1973) seeking grant of regular bail in connection with the offence registered by the Enforcement Directorate (ED) by way of an ECIR alleging commission of offence punishable under Section 3 read with Section 4 of the Prevention of Money Laundering Act, 2002 arising out of the alleged scheduled offences under the Prevention of Corruption Act, 1988.

FACTUAL MATRIX

2. Genesis of Proceedings:

The present proceedings arise out of FIR No. 04/2024 dated 17.01.2024 registered by the EOW/ACB, Raipur, for offences punishable under Sections 420, 467, 471 and 120-B of the Indian Penal Code, 1860 and Sections 7 and 12 of the Prevention of Corruption Act, 1988, alleging a large-scale criminal conspiracy in the excise administration of the State of Chhattisgarh during the period 2019 to 2023, resulting in an alleged loss of approximately ₹ 2161 crore to the State exchequer.

3. Initiation of PMLA Investigation

On the basis of the said scheduled offences, proceedings under the Prevention of Money Laundering Act, 2002 were initiated by the Directorate of Enforcement through ECIR No. RPZO/04/2024 dated 11.04.2024. The gravamen of the ED case is that the proceeds generated from the alleged excise scam constitute “proceeds of crime” which were concealed, layered and projected as untainted property by various accused persons.

4. Excise Policy Framework and Institutional Structure

The excise policy of the State underwent a structural change in 2017 with the creation of the Chhattisgarh State Marketing Corporation Limited (CSMCL), entrusted with exclusive retail sale of liquor through State-run outlets, with procurement from manufacturers and storage through the Chhattisgarh State Beverage Corporation Limited (CSBCL). Liquor in the State broadly falls under two categories, namely Country Liquor (CL) and Indian Made Foreign Liquor (IMFL), with country liquor being manufactured only through three distilleries operating within the State.

5. Alleged Criminal Syndicate and Control Mechanism

The prosecution case alleges that a criminal syndicate comprising senior bureaucrats, politicians, excise officials and private entities subverted the statutory excise framework and converted CSMCL into an instrumentality for institutionalized corruption. It is alleged that Arun Pati Tripathi was positioned as Managing Director, CSMCL, to operationalize the scheme, while policy decisions and administrative approvals were facilitated at higher levels of governance

6. Modus Operandi – PART-A (Accounted Liquor)

Under the first limb of the alleged conspiracy (PART-A), commissions were allegedly extracted from distillers on procurement of accounted liquor by CSMCL. Preferred manufacturers were favoured, while non- compliant distillers were sidelined. The alleged commission was fixed initially at ₹75 per case and was subsequently enhanced. The prosecution alleges that detailed procurement data was used to ensure systematic collection of commission, which was allegedly shared among syndicate members and political functionaries.

7. Modus Operandi – PART-B (Unaccounted / Illicit Liquor)

The second limb (PART-B) pertains to alleged manufacture and sale of unaccounted “kacha” liquor through State-run shops. According to the prosecution, duplicate holograms, bottles and transportation channels were used to bypass warehouses and regulatory safeguards. The entire sale was allegedly conducted in cash, without payment of excise duty or taxes, resulting in illicit enrichment of the syndicate.

8. Modus Operandi – PART-C and FL-10A Licences

A third stream of alleged illegal earnings (PART-C) is stated to have arisen from cartelization among distillers and extraction of quid pro quo payments for market allocation. Further, FL-10A licences were allegedly introduced to extract commissions from foreign liquor manufacturers, with licence h