ED making bald allegations, says SC on bail plea of accused in Chhattisgarh liquor scam

New Delhi, The Supreme Court rebuked the Enforcement Directorate on Monday for making allegations against an accused in a liquor scam case "without any evidence" and said it has become a pattern.

A bench of Justices Abhay S Oka and Ujjal Bhuyan was hearing a petition filed by Arvind Singh seeking bail in the alleged ₹2,000-crore liquor scam in Chhattisgarh.

"This is a pattern adopted by the ED in a number of cases. You just make allegations without any evidence. The prosecution won't stand before the court in this manner," the bench said.

During the hearing, Additional Solicitor General S V Raju alleged that Singh had earned ₹40 crore in collusion with another man named Vikas Agarwal.

When the court asked, if Agarwal had been made an accused, Raju replied that he was absconding.

The bench said, "You have made a specific allegation that he earned ₹40 crore. Now you are not able to show the connection of this man with this or any other company.

"You should state whether he is the director of those companies, whether is a majority shareholder, whether he is Managing Director. Something has to be there," the court said.

Raju said a person can be controlling a company but does not necessarily have to be responsible for the conduct of the company.

The top court said the agency was making a bald allegation.

The matter is now posted for hearing on May 9.

The apex court had on April 28 pulled up the Chhattisgarh government and asked how long it would keep an accused in jail in connection with the liquor scam case filed by the state authorities.

It had noted that three chargesheets were filed in the matter and the investigation was still underway.

"Investigation will go on at 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 had remarked orally.

The state had 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 had argued that three chargesheets have been filed in the case and charges are yet to be framed.

The top court allowed 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 ₹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 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.

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