C'garh liquor scam: SC says govt virtually penalising accused in custody

The Supreme Court, hearing two bail pleas in the alleged Rs 2,000 crore liquor scam in Chhattisgarh, on Monday pulled up the state government and asked how long it will keep an accused in jail.

A bench of Justices Abhay S Oka and Ujjal Bhuyan noted that three chargesheets were filed in the matter and the investigation was still underway.

"Investigation will go on its own speed. It will go on till eternity. Three chargesheets have been filed. You are virtually penalising the person by keeping him in custody. You have made the process a punishment. This is not some case of terrorist or triple murder," the bench remarked orally.

Senior advocate Mahesh Jethmalani, appearing for the state, opposed the bail pleas and submitted that the accused need to be confronted with the other accused in the case.

Appearing for the accused, senior advocate Siddharth Agarwal argued that three chargesheets have been filed in the case and charges are yet to be framed.

"I (petitioner) was arrested with three persons. Six people including public servants have been granted bail. There are 457 witnesses. Investigation is still underway," Agarwal said.

The top court allowed the petitioners, Arvind Singh and Amit Singh, to be confronted with former excise minister Kawasi Lakhma and posted the matter for May 9.

The Enforcement Directorate has alleged that the scam was perpetrated by a syndicate of high-level state government officials, private persons and political executives that generated more than Rs 2,000 crore in tainted money in 2019-22.

The money laundering case stems from a 2022 income tax department chargesheet filed in a court in Delhi.

The ED alleged that bribes were collected from distillers in the state on a per liquor case basis procured from the CSMCL (state body for purchase and sale of liquor) and country liquor was being sold off-the-books.

According to the federal probe agency, bribes were taken from distillers to allow them to form a cartel and have a fixed market share.