IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Arvind Kumar Verma, J
Dipen Chawda – Appellant
Versus
State Of Chhattisgarh – Respondent
MCRC No. 43 of 2026
| Table of Content |
|---|
| 1. factual background and initiation of pds scam investigation. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10) |
| 2. arguments for bail based on parity, lack of evidence, and prolonged incarceration. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38) |
| 3. state's opposition citing gravity of economic offences and potential witness tampering. (Para 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54) |
| 4. court's analysis emphasizes parity, article 21 rights, and concluded investigation phases. (Para 55 , 56 , 57 , 58 , 59 , 60 , 61 , 62 , 63 , 64 , 65 , 66 , 67 , 68 , 69 , 70 , 71 , 72 , 73) |
| 5. granting regular bail subject to specified conditions and jurisdictional limitations. (Para 74 , 75) |
1 - The present application, preferred under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023, seeks the grant of regular bail to the Applicant in connection with Crime No. 01/2024 of the Economic Offences Wing/Anti-Corruption Bureau, Raipur, District Raipur (C.G.), pertaining to offences under Sections 11 , 13(1)(a), and 13(2) of the Prevention of Corruption Act, 2018 , read with Sections 120-B, 384, and 409 of the Indian Penal Code, 1860.
2. The prosecution case, in brief yet comprehensive terms, unfolds as follows: On 09.01.2024, the State Economic Offences Investigation Bureau (SEOIB) received a pivotal communication from the Enforcement Directorate (ED), Raipur, prompting the initiation of a confidential verification exercise. This inquiry targeted widespread allegations of illegal monetary collections orchestrated in connection with custom milling processes across the State of Chhattisgarh—a critical component of the State's public distribution system (PDS) under which rice millers are allotted quotas for processing paddy into fortified rice for government procurement via entities like MARKFED (Chhattisgarh State Cooperative Marketing Federation Ltd.).
3. It was specifically alleged that certain influential office-bearers of the Chhattisgarh State Rice Millers Association, acting in criminal collusion and conspiracy with public servants, had systematically extracted unlawful payments from registered rice millers. These exactions were purportedly made as quid pro quo for securing preferential allotments of custom milling quotas, facilitating processing contracts, and ensuring smooth execution thereof. The implicated public servants included senior officials of MARKFED, district-level authorities responsible for quota distribution, and other regulatory functionaries, who allegedly abused their official positions to favour the accused association office-bearers.
4. The modus operandi, as per the prosecution narrative, involved the creation of fictitious demands for "association fees," "processing charges," or "facilitation amounts" totaling substantial sums, siphoned off under the guise of legitimate operational costs. This racket not only undermined the transparency of PDS procurement but also caused pecuniary loss to the state exchequer and individual millers coerced into payments. The SEOIB's (State Economic Offences Investigation Bureau) verification, grounded in the ED's inputs, uncovered documentary evidence such as ledgers, bank transactions, communications, and witness statements corroborating the syndicate's operations, leading to the registration of the instant FIR and subsequent investigation under relevant provisions of the Indian Penal Code, Prevention of Corruption Act, and allied statutes.
5. Pursuant to the aforementioned communication, FIR No. 01/2024 dated 16.01.2024 was registered at the State Economic Offences Investigation Bureau, Raipur, invoking offences under the Prevention of Corruption Act, 1988, and relevant provisions of the Indian Penal Code, 1860. The allegations center on systematic illegal recoveries of approximately ₹240 per quintal from rice millers during custom millin
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