News Citation : 2026 LN (HC) 6
Bilaspur : The Chhattisgarh High Court has granted bail to Chaitanya Baghel, son of former Chief Minister Bhupesh Baghel, in a money laundering case linked to the alleged ₹2,833 crore liquor scam in the state. The Court underscored that continued incarceration must satisfy the constitutional tests of necessity and proportionality and cannot be punitive.
Justice Arvind Kumar Verma allowed the bail plea on Friday, observing that the prosecution failed to place material showing the applicant’s direct involvement in generating proceeds of crime. Chaitanya Baghel, arrested by the Enforcement Directorate on July 18, 2024, is expected to be released on Saturday after spending over five months in custody.
While granting bail, the Court strongly criticised the Economic Offences Wing for a “grave violation of law”. It noted that a co-accused, Lakshminarayan Bansal, was a permanent wanted accused against whom a warrant had been issued by the Special Court. Despite this, the investigating officer only recorded his statement and allowed him to escape without executing the warrant. Justice Verma directed the Director General of Police to conduct an inquiry into the lapse and ensure such conduct is not repeated.
On the ED’s case, the High Court said the allegations were largely based on statements recorded under Section 50 of the PMLA and broad assertions, without documentary backing. The order noted the absence of any document, official communication, financial instrument, bank account, property record, or digital trail linking Chaitanya Baghel to procurement decisions, cash collections, or control over the alleged liquor syndicate.
The EOW had filed a chargesheet on December 22 alleging that Chaitanya Baghel gained ₹200–250 crore from the scam between 2019 and 2022. The ED, in a supplementary complaint filed on September 15, had claimed he handled nearly ₹1,000 crore in illicit funds.
The liquor scam case revolves around allegations of a criminal syndicate that manipulated liquor sales through government shops and extorted illegal commissions in collusion with political and administrative officials. So far, 81 people have been chargesheeted, including former excise minister Kawasi Lakhma, former deputy secretary Saumya Chaurasia, Anwar Dhebar, former IAS officer Anil Tuteja, and retired IAS officer Niranjan Das.