The Supreme Court on Tuesday granted interim bail to Congress MLA and former Chhattisgarh excise minister Kawasi Lakhma, who has been in custody since January 2025 in connection with twin liquor scam cases lodged separately by the Enforcement Directorate and the state police’s Anti-Corruption Bureau (ACB)/Economic Offences Wing (EOW).
Lakhma was first arrested by the Enforcement Directorate (ED) on January 15, 2025, in connection with money laundering allegations linked to a massive liquor scam that allegedly occurred during the tenure of the Bhupesh Baghel-led Congress government in Chhattisgarh. Subsequently, on April 2, 2025, he was arrested again in a separate case lodged by the state’s ACB/EOW.
According to the ED, the alleged scam took place between 2019 and 2022 and involved the generation of illegal proceeds running into thousands of crores through a liquor syndicate operating under political and bureaucratic patronage.
A bench comprising Chief Justice Surya Kant, and Justices Joymalya Bagchi and Vipul M Pancholi granted interim bail to Lakhma, noting that he had been in custody for over a year and that trials in both cases had not yet commenced.
The Court observed that both investigations were still ongoing and that the trials would involve examination of “several hundred prosecution witnesses.” Considering these factors, the bench granted bail with stringent conditions.
The Court directed that:
- Lakhma must reside outside Chhattisgarh during the bail period.
- He shall not participate in assembly proceedings, rejecting the plea that he be allowed to perform his duties as an MLA.
- He must surrender his passport to the trial court.
- He must not attempt to influence witnesses in either case.
- He shall share his mobile number and location details with the investigating agencies.
- The ED and ACB/EOW are permitted to seek cancellation of bail in case of any violation.
The case also names Chaitanya Baghel, son of former CM Bhupesh Baghel, as a key conspirator. The ED claims Chaitanya personally handled around ₹1,000 crore, while the ACB/EOW estimated his alleged share to be ₹200–250 crore.
The ED has filed a final prosecution complaint naming 59 individuals, bringing the total number of accused in the money laundering case to 81. Those named include bureaucrats, liquor licensees, excise officials, and former deputy secretary Soumya Chaurasia and former IAS officer Niranjan Das.
The matter is likely to return to court as trials commence and investigative agencies continue their probes. The Supreme Court’s order also leaves open the possibility of bail cancellation should conditions be breached.
