Liquor scam shakes Chhattisgarh: Ex-CM Bhupesh Bhagel’s son arrested, ED alleges ₹1,392 cr siphoned off

The arrest has jolted the state’s political landscape, with the ED alleging that between 2019 and 2023, the state’s liquor trade functioned as a full-fledged extortion racket — sanctioned by policy, sustained by bureaucratic complicity, and steered by political clout.

At the core of the scam, the ED alleges, was Chaitanya Baghel himself — accused of funnelling unaccounted liquor profits into a real estate venture named Vitthal Green, turning it into a front for money laundering.

Shell companies, cash transactions and a ₹5 crore ‘loan’

According to the ED’s remand note accessed by NDTV, a shell company named Saheli Jewellers transferred ₹5 crore to Chaitanya Baghel’s firm, allegedly without interest and under the guise of a loan.

₹4.5 crore of the amount remained unpaid, raising red flags.

Despite the books reflecting only ₹7.14 crore as the construction cost of Vitthal Green, ED estimates peg the actual expenditure between ₹13 and ₹15 crore.

Of this, at least ₹4.2 crore was allegedly paid in unaccounted cash to contractors.

In one single day in 2020, employees of liquor trader Trilok Singh Dhillon reportedly purchased 19 flats in the complex — a move the agency believes was meant to conceal the origin of illicit funds.

ED says syndicate operated under retired Chief Secretary

What has further intensified the controversy is the ED’s claim that the liquor network — involving Anwar Dhebar, former IAS officer Anil Tuteja and Indian Trade Service officer Arun Pati Tripathi — operated under the alleged oversight of retired Chief Secretary Vivek Dhand.

The agency has described Mr Dhand not just as a facilitator, but a direct beneficiary of the scam.

Liquor economy hijacked in three phases, says ED

The scam, as outlined by the ED, ran through a three-tier system:

Phase A: Distillers were allegedly forced to pay a ₹75 “commission” per liquor case, which was baked into the pricing structure. This system was reportedly managed by Anil Tuteja and Arun Pati Tripathi and overseen by Anwar Dhebar. This alone is believed to have generated more than ₹319 crore.

Phase B: The ED uncovered a parallel liquor supply chain that bypassed government warehouses. Duplicate holograms were used, and liquor was sold directly to retail vendors for cash. Around 400 trucks per month are believed to have been involved in this illicit operation during 2022–23, generating an estimated ₹3,000 profit per case.

Phase C: Premium foreign liquor was allegedly channelled through a rigged FL-10A licence system. Select firms — described by ED as syndicate fronts — were granted exclusive rights to import and sell foreign brands at inflated prices. Profits were allegedly split, with 60% of the proceeds funnelled to a political nexus. This arm alone allegedly raked in ₹211 crore.

From bottles to bureaucracy: ‘every cog was greased’

What makes the scam unprecedented, according to the agency, is the depth of institutional capture.

The ED claims that every layer of the alcohol distribution system — from bottle manufacturers and hologram printers to excise inspectors and logistics contractors — was compromised.

A key accused, Laxmi Narayan Bansal alias Pappu, reportedly told investigators that he alone managed over ₹1,000 crore in illicit funds.

He is said to have personally delivered ₹80–100 crore in cash to one KK Srivastava, allegedly on Chaitanya Baghel’s instructions.

Chat records retrieved from Anwar Dhebar’s phone reportedly reveal Baghel’s central role in coordinating the movement of black money.

‘Systematic plunder dressed as policy’: ED

"This wasn’t just an abuse of office," an ED official told NDTV off the record. "It was a systematic plunder dressed as policy."

With Chaitanya Baghel now in custody, the ED has sought five days of remand to gather digital evidence, trace financial links and identify others in the chain of command. However, sources say he has remained evasive and uncooperative during questioning, refusing to disclose fund flow details.

Congress under scanner as political fallout deepens

The agency claims that ₹1,392 crore was allegedly siphoned off to Congress leaders and their associates between 2019 and 2022 — a revelation that could have far-reaching political consequences.