In a major development in Chhattisgarh, Congress leader Kawasi Lakhma has been arrested in connection with a Rs 2,161 crore liquor scam that took place between 2019 and 2023, during the tenure of Chief Minister Bhupesh Baghel’s government. Lakhma, who served as the state’s Excise Minister, is accused of being part of a syndicate involving senior bureaucrats, politicians, and excise officials who ran an illegal liquor operation, bypassing the state’s excise system.
Lakhma allegedly received Rs 72 crore from the scheme, using part of the money to build a Congress office and a home for his son. Other individuals, including middlemen and officials, have also been arrested.
How the Scam Operated
According to the Enforcement Directorate (ED), the scandal revolved around the illegal sale of liquor. Between April 2019 and June 2022, distillers reportedly supplied over 40 lakh cases of country liquor that were not recorded in the official books. The liquor was sold to the public for Rs 3,880 per case, but none of the revenue reached the state.
Fake government holograms were allegedly used on liquor bottles, with a company linked to a state bureaucrat being responsible for producing them. The ED’s investigation has revealed that the sale of this liquor took place off the books, with no record of the transactions, enabling the syndicate to siphon off the money.
Key Players and Modus Operandi
The scam reportedly began when the Chhattisgarh government introduced a new excise policy in 2017 under BJP rule, creating the Chhattisgarh State Marketing Corporation Limited (CSMCL) to manage liquor sales. After the Congress government took over in 2018, the new management at CSMCL allegedly turned it into a tool for running a parallel excise department.
The ED claims that in 2019, a new company was hired to produce fake holograms for liquor bottles. These fake holograms were supplied to officials who attached them to bottles of liquor that were being sold illegally. The scam involved several parties, including distillers, transporters, excise officials, and even senior bureaucrats and politicians, all profiting from the illegal sale.
The ED also uncovered suspicious financial transactions, including Rs 50 lakh paid to a company in which Tripathi’s wife had a stake, disguised as a software purchase.
A Wide-Scale Operation
The illegal operation was not limited to fake holograms. The scam also included the use of duplicate bottles and a system that bypassed state warehouses. The entire process was designed to keep the liquor sale off the state’s books, allowing the syndicate to pocket the proceeds. The illicit activities generated huge sums through illegal commissions on legal liquor sales, cartelization of liquor prices, and most notably, the massive illegal liquor sales.
The ED investigation has exposed a deeply entrenched network of corruption involving several high-ranking officials and politicians, with the illegal liquor trade being the largest source of illicit cash.
This case highlights the scale of corruption in Chhattisgarh’s liquor distribution system and the involvement of powerful figures in the scheme.
