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2026 (1) TMI 151
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....dicating the present bail application, this Court deems it appropriate to advert to the brief facts of the case. BRIEF FACTS OF THE CASE 2. The short case of the prosecution as set out in the FIR and the records before this Court, is that by the ED letter dated 11.07.2023 under Section 66(2) PMLA which alleges a massive 2019-2023 syndicate involving manufacture/sale of illegal liquor through licensed government shops in Chhattisgarh generating huge proceeds distributed among excise officials, bureaucrats, distillers and political functionaries, causing loss of exchequer. Notably the applicant was not named in the FIR. The investigation has spanned 21 months, the Charge sheet No. 03/2024 dated 01.07.2024, arraigned 4 accused; stated "further investigation underway." Five supplementary charge sheets filed sequentially: 27.09.2024, 18,11,2024, 30.06.2025, 07.07.2025 & 26.08.2025 - none arraigned the applicant despite passing references. There are total of 51 accused were arrayed and 29 charge sheets without arrest. ED has registered ECIR RPZO/04/2024 dated 11.04.2024 predicated on this FIR and conducted search at applicant's premises leading to arrest on 18.07.2025. Applicant....
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...., Raipur, which came to be rejected vide detailed order dated 08.10.2025. This constitutes the instant bail application preferred by the Applicant before this Court. SUBMISSIONS ON BEHALF OF THE APPLICANT 6. Learned Senior Counsel for the Applicant, aptly submits that while inviting this Court to the unique facts and circumstances of the case, most respectfully and vehemently submitted as under: I. THE ARREST OF THE APPLICANT IS EX-FACIE MALAFIDE, ARBITRARY AND CONSTITUTES A CLASSIC INSTANCE OF "EVERGREENING" CUSTODY TO DEFEAT STATUTORY REMEDIES - A GROSS ABUSE OF PROCESS OF LAW DEMANDING IMMEDIATE RELEASE 7. Shri Hariharan, learned Senior Counsel for the applicant submits that this is not an ordinary bail application; this is a clarion call against the blatant misuse of arrest powers by the Economic Offences Wing (EOW) to perpetuate incarceration where investigation stands virtually complete. The Applicant stands completely unmentioned in the FIR dated 17.01.2024 - the foundational document of this prosecution. Notwithstanding a whopping 21 months of investigation, during which six charge sheets (main + five supplements) were meticulously filed on 01.07.2024, 27.09.202....
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.... society's rights and wisely held that the exclusion rule was bad law, that society came first, and that the criminal should not go free because the constable blundered. In People v. Defore Justice Cardozo observed: "The question is whether protection for the individual would not be gained at a disproportionate loss of protection for society. On the one side is the social need that crime shall be repressed. On the other, the social need that law shall not be flouted by the insolence of office. There are dangers in any choice. The rule of the Adam's case (People v. Adams) strikes a balance between opposing interests. We must hold it to be the law until those organs of government by which a change of public policy is normally effected shall give notice to the courts that change has come to pass." 10. To the same effect is the statement by Judge Learned Hand, in Fried Re3: "The protection of the individual from oppression and abuse by the police and other enforcing officers is indeed a major interest in a free society; but so is the effective prosecution of crime, an interest which at times seems to be forgotten. Perfection is impossible; like other huma....
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....rly stipulates that an arrest under this provision can be made based on a complaint or credible information that an individual has committed a cognizable offence punishable with imprisonment up to seven years, with or without a fine. However, such an arrest must be conducted subject to the satisfaction of specific conditions outlined in subsections (a) to (e). The rigors of Section 41(1)(b)(ii) have been extensively examined by this Court in Arnesh Kumar (supra), where it was observed that: "7.1. From a plain reading of the aforesaid provision, it is evident that a person accused of offence punishable with imprisonment for a term which may be less than seven years or which may extend to seven years with or without fine, cannot be arrested by the police officer only on its satisfaction that such person had committed the offence punishable as aforesaid. Police officer before arrest, in such cases has to be further satisfied that such arrest is necessary to prevent such person from committing any further offence; or for proper investigation of the case; or to prevent the accused from causing the evidence of the offence to disappear; or tampering with such evidence in any mann....
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....reasury, all of which insist that a developed jurisprudence of bail is integral to a socially sensitized judicial process'.4 The principle has further been expanded to establish that the prolonged incarceration of an accused person, pending trial, amounts to an unjust deprivation of personal liberty. This Court in Union of India v. K.A. Najeeb has expanded this principle even in a case under the provisions of the Unlawful Activities (Prevention) Act, 1967 (hereinafter 'UAPA') notwithstanding the statutory embargo contained in Section 43-D(5) of that Act, laying down that the legislative policy against the grant of bail will melt down where there is no likelihood of trial being completed within a reasonable time.5 The courts would invariably bend towards 'liberty' with a flexible approach towards an undertrial, save and except when the release of such person is likely to shatter societal aspirations, derail the trial or deface the very criminal justice system which is integral to rule of law. 39. It was submitted during these proceedings that the FIR was registered on 17.08.2022, and since then, the chargesheet along with four supplementary chargesheets have been filed. The....
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.... only. III. ARREST VIOLATES STATUTORY SAFEGUARDS UNDER SECTION 35(b) BNSS - NO PRECONDITIONS SATISFIED 11. Neither the grounds of arrest nor the remand application dated 24.09.2025 disclose any material, much less any tangible material, that satisfies the statutory sine qua non under Section 35(b) BNSS. * Preventing further offence: There is no specific apprehension that the Applicant is likely to commit any further offence; he is not a history-sheeter and has no criminal antecedents. * Aiding investigation: By the time of his arrest, the investigation had already been underway for 21 months; six chargesheets had been filed; and the investigating agency itself records that the Applicant's interrogation stood concluded in a brief two-hour session. No fresh investigative step is shown to have flowed from his subsequent custody. * Preventing tampering: The case is purely documentary. All relevant material has long since been seized by the ED/EOW, and no further recovery is stated to be pending. * Securing presence: The Applicant is a permanent resident of Chhattisgarh with deep roots and has always cooperated with the law; there is no allegati....
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.... contemporanea expositio will fully come to the aid of such interpretation as the matters which are understood and implemented for a long time, and such practice that is supported by law should be accepted as part of the interpretative process." 13. In the matter of "Vinubhai Haribhai Malaviya v. State of Gujarat, (2019) 17 SCC 1, it has been observed that : "42. There is no good reason given by the Court in these decisions as to why a Magistrate's powers to order further investigation would suddenly cease upon process being issued, and an accused appearing before the Magistrate, while concomitantly, the power of the police to further investigate the offence continues right till the stage the trial commences. Such a view would not accord with the earlier judgments of this Court, in particular, Sakiri (supra), Samaj Parivartan Samudaya (supra), Vinay Tyagi (supra), and Hardeep Singh (supra); Hardeep Singh (supra) having clearly held that a criminal trial does not begin after cognizance is taken, but only after charges are framed. What is not given any importance at all in the recent judgments of this Court is Article 21 of the Constitution and the fact that the Article d....
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....ourt' to file a supplementary chargesheet, is a part of Section 173(8) CrPC. That being the position, in our considered view, the Court is not rendered functus officio having granted such permission. Since the further investigation is being made with the leave of the Court, judicial stewardship/control thereof, is a function which the court must perform. (ii) Reasons are indispensable to the proper functioning of the machinery of criminal law. They form the bedrock of fairness, transparency, and accountability in the justice system. If the Court finds or the accused alleges (obviously with proof and reason to substantiate the allegation) that there is a large gap between the first information report and the culminating chargesheet, it is bound to seek an explanation from the investigating agency and satisfy itself to the propriety of the explanation so furnished. The direction above does not come based on this case alone. This Court has noticed on many unfortunate occasions that there is massive delay in filing chargesheet/taking cognizance etc. This Court has time and again, in its pronouncements underscored the necessity of speedy investigation and trial as bein....
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....rk governing complaint cases and the investigation before the adjudicating authority. Illegality means a fundamental breach of law which cannot be fix, whereas an irregularity is a procedural deviation that can often be corrected or regularized. Notwithstanding this, such deviation, while irregular, would not vitiate the proceedings or amount to illegality. XXXX XXXX XXXX 103. The ground raised by the petitioner in this petition are procedural lapses/irregularities which does not amount to illegality. Learned counsel for the respondent in para 70 of his written submission has stated that the petitioner deserves to be relegated to the remedy of a regular bail which requires the petitioner to satisfy the mandatory twin conditions of bail under Section 45 of PMLA to seek release from custody. I agree with the contention raised by the learned counsel for the respondent that the grounds raised in this petition are procedural lapses /irregularities not amounting to illegality and these are the grounds of bail. In light of the foregoing discussion, this Court finds no ground to interfere with the investigation or the arrest effected by the Investigating Agency. According....
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....d 25.09.2025; and Sunil Dutt, arrayed as A-10 with operational role as syndicate member handling logistics for spurious liquor transportation and distribution, was released by this Court in M.Cr.C No. 188/2025 dated 12.03.2025. These instances are not aberrations but the rule: of 51 accused arrayed across six chargesheets, 29 stand charge-sheeted without any arrest whatsoever, while of the 22 arrested, 12 (over 55%) have already been granted bail by the Apex Court and this Court itself, including principal kingpins, cash aggregators, excise officials, and direct beneficiaries - all with roles demonstrably graver than the peripheral "money routing" allegation against the Applicant who remains unnamed in the FIR and evert chargesheet. This pick and choose methodology, where even absconder Laxminarayan Bansal (against whom open-ended arrest warrant dated 19.05.2025 in Corruption Case No. 01/2024 remains operative) roams free while his vitiated statement alone sustains the Applicant's custody, constitutes naked discrimination offending Article 14. As held in Vipin Yadav v. Directorate of Enforcement, 2025 SCC OnLine Del 6237 (paras 31, 39-40), where co-accused with similar or grave....
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....discriminated against. Most Egregious Violation: Absconder with open-ended arrest warrant issued by Special Court (PC Act), Raipur on 19.05.2025 (Corruption Case No. 01/2024) - against Laxminarayan Bansal (Pappu Bansal) was never cancelled/recovered. His role as a Prime cash conduit; his legally vitiated statement (recorded while warrant operative, violating Section 72 BNSS) forms sole basis for Applicant's arrest. It is irony that the EOW neither arrests him nor cancels warrant, yet relies on his statement to oppose Applicant's bail. As has been held in Vipin Yadav v. Directorate of Enforcement (supra) "Where co-accused with similar or graver allegations have been granted bail, parity becomes irresistible. Discrimination in bail jurisprudence offends Article 14. 17. Similarly in the matter of Krishnan Subramanian v. State, 2022 SCC OnLine Del 1384, it has been held as under: "17. Learned ASC submitted that given the sensitive nature of the matter and the large sums of money involved, there is a strong possibility of the applicant absconding and not facing trial. Further if released on bail, he can influence the witnesses and tamper with evidence since ....
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....that of several co-accused who have already been enlarged on bail. Unlike accused A-1 to others, the Applicant is not named in the FIR or in any of the chargesheets; no summons, notice or prior search was ever directed against him by the EOW, though other co-accused were repeatedly interrogated and their premises raided. No cash, documents or other incriminating articles have been recovered from the Applicant, in stark contrast to the substantial cash recoveries made from admitted cash aggregators and field operators. Even on the prosecution narrative, the allegation against the Applicant is confined to an ancillary or peripheral role of "routing money", whereas the co-accused who have secured bail are attributed core operational roles in manufacturing, supply, storage, transport, cash collection and distribution across the syndicate. The Applicant is a first-time offender with no prior criminal antecedents, unlike several co-accused who are alleged to be repeat participants in the liquor syndicate over multiple excise years. If Arun Pati Tripathi (A-1), projected as the mastermind, has been found deserving of liberty by the Hon'ble Supreme Court, and if persons like Trilok Singh D....
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....e Constitutional Rights but rather "recalibration of the scales of justice." XXXXX XXXX XXXXX 42. When the undertrial prisoners are detained in jail custody to an indefinite period, Article 21 of the Constitution is violated. Every person, detained or arrested, is entitled to speedy trial, the question is : whether the same is possible in the present case. 43. There are seventeen accused persons. Statement of the witnesses runs to several hundred pages and the documents on which reliance is placed by the prosecution, is voluminous. The trial may take considerable time and it looks to us that the appellants, who are in jail, have to remain in jail longer than the period of detention, had they been convicted. It is not in the interest of justice that accused should be in jail for an indefinite period. No doubt, the offence alleged against the appellants is a serious one in terms of alleged huge loss to the State exchequer, that, by itself, should not deter us from enlarging the appellants on bail when there is no serious contention of the respondent that the accused, if released on bail, would interfere with the trial or tamper with evidence. We do not see ....
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....sic material connecting him to any hologram, tender paper, licence or bogus record. Section 420 IPC (cheating): There is no allegation, much less proof, of any dishonest inducement by the Applicant causing delivery of property or any act/omission by a particular person to his detriment. The essential elements of deception and consequent delivery are conspicuously absent. Section 120-B IPC (criminal conspiracy): Apart from generalized assertions that the Applicant "benefitted" from the alleged scam, there is no tangible material demonstrating a meeting of minds or any physical manifestation of an agreement between the Applicant and named co-accused, as mandated in Ram Sharan Chaturvedi v. State of M.P., (2022) 16 SCC 166, where the Apex Court held that mere association or proximity is insufficient, and there must be concrete evidence of a shared design translated into overt acts. (iii) Scope of bail jurisdiction - no mini-trial. It is trite that at the stage of bail the Court is not required to conduct a mini-trial or weigh the evidence as at final adjudication; what is required is only a prima facie satisfaction that the accusation is supported by credible material. When, as ....
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....used before conviction, wherein the accused is not guaranteed bail, rather it puts onus on the prosecution to establish as to why the under-trial prisoner should not be enlarged on bail. Any deviation in the above proposition is constitutionally circumspect. XXXXX XXXXX XXXXXX 14. Fundamentally every accused before this Hon'ble Court seeking bail is an undertrial, clothed with the presumption of innocence, a foundational postulate that does not dissolve merely because allegations are serious or the statute invoked is stringent. It is established through a catena of decisions that pre-trial incarceration cannot be allowed to degenerate into punishment without adjudication, and courts are constitutionally obliged to intervene where long custody becomes disproportionate, arbitrary, or excessive. This Court recently in the case of Javed Gulam Nabi Shaikh v. State of Maharashtra, (2024) 9 SCC 813, while granting bail to an accused being prosecuted under the provisions of the Unlawful Activities (Prevention) Act, 1967, took into consideration his incarceration of 4 years, and the stage of the trial, where charges were yet to be framed and the prosecution furthe....
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....sting of the money in 81 shell companies. Admittedly, this is a case based on documentary evidence and all the accused persons connected with these companies, except the appellants herein have been granted bail. In the present case, total 11 cases have been registered against the appellant as indicated in para 3 above. In all other cases, the appellants have been released on bail. The chargesheet filed by the CBI is voluminous in nature containing more than 4 lakh pages and having 736 witnesses. In addition, 17 trunks of documents are those which are not relied upon and may be brought on record subsequently if deemed necessary by the prosecution. The proceedings against the assets have already been taken up by the NCLT and the CIRP is in progress. In the present case, pending trial, the charges have not yet been framed by the Court. 25. Thus, looking to the number of witnesses and the orders passed by the Courts, it appears that if the case is taken up on day-to-day basis, even in two to three years, the conclusion is not possible. Considering all the facts and circumstances of the case, subject to putting the restrictions on movement of appellants out of India, and withou....
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....GOLDEN CANON: BAIL, NOT JAIL - REINFORCED BY CONDITIONS 26. In the matter of State of Rajasthan v. Balchand, (1977) 4 SCC 308: "Basic rule is bail, not jail. In P. Chidambaram Vs. ED, (2020) 13 SCC 791, it has been held as under: 23. In Kalyan Chandra Sarkar v. Rajesh Ranjan and another (2004) 7 SCC 528, it was held as under:- "11. The law in regard to grant or refusal of bail is very well settled. The court granting bail should exercise its discretion in a judicious manner and not as a matter of course. Though at the stage of granting bail a detailed examination of evidence and elaborate documentation of the merit of the case need not be undertaken, there is a need to indicate in such orders reasons for prima facie concluding why bail was being granted particularly where the accused is charged of having committed a serious offence. Any order devoid of such reasons would suffer from non- application of mind. It is also necessary for the court granting bail to consider among other circumstances, the following factors also before granting bail; they are: (a) The nature of accusation and the severity of punishment in case of conviction and the nature of support....
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....t. No other effective remedy subsists. Hence prayed accordingly. SUBMISSION ON BEHALF OF THE RESPONDENT/STATE 28. Learned counsel for the State submits the following point-wise reply to the submissions advanced by the learned Senior Counsel for the applicant, demonstrating why the applicant-the alleged kingpin and principal beneficiary of a Rs. 4000 plus crore liquor syndicate oses an existential threat to the ongoing investigation and merits continued custody: I. ARREST MALAFIDE/"EVERGREENING" - A BASELESS CANARD; ARREST TIMED PERFECTLY WITH EVIDENTIARY FOLDING 29. The Applicant's narrative of "insurance arrest" is a deliberate distortion of unimpeachable investigative chronology. Far from being unnamed or peripheral, the Applicant emerges as the architect of the scam through emerging evidence post-five supplementary chargesheets: Chargesheet No. 03/2024 (01.07.2024, pg. 239) contained initial leads on Applicant's fund routing; full culpability crystallized via post-chargesheet statements (Probir Sharma dt. 04.12.2025; Laxminarayan Bansal) + banking trails confirming Rs.1000+ crores parked on Applicant's instructions. Arrest on 24.09.2025 followed dismissal....
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....disobey summons he/she is not required to be produced in custody. The word "custody" appearing in Section 170 of the Cr.P.C. does not contemplate either police or judicial custody but it merely connotes the presentation of the accused by the Investigating Officer before the court while filing the chargesheet. 10. We may note that personal liberty is an important aspect of our constitutional mandate. The occasion to arrest an accused during investigation arises when custodial investigation becomes necessary or it is a heinous crime or where there is a possibility of influencing the witnesses or accused may abscond. Merely because an arrest can be made because it is lawful does not mandate that arrest must be made. A distinction must be made between the existence of the power to arrest and the justification for exercise of it. If arrest is made routine, it incalculable harm to the reputation and self-esteem of a person. If can cause the Investigating Officer has no reason to believe that the accused will abscond or disobey summons and has, in fact, throughout cooperated with the investigation we fail to appreciate why there should be a compulsion on the officer to arrest the....
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....ing excluded from the records by the implication. In fact, except by a specific order of a higher court competent to make said orders, the previous as well as supplementary report shall form part of the record which the trial court is expected to consider for arriving at any appropriate conclusion, in accordance with law. It is also interesting to note that the CBI itself understood the order of the court and conducted only 'further investigation' as is evident from the status report filed by the CBI before the High Court on 28th November, 2007." In the matter of Robert Lalchungnunga (2025) doesn't retroactively invalidate accepted chargesheets. The present case of the applicant Chaitanya Baghel (17.10.2025) is distinguished: There is no chargesheet acceptance; full judicial cognizance. IV: PARITY INAPPLICABLE - BAILS TO MINORS; SUPREME COURT REJECTED KINGPINS 33. Applicant's cherry-picked list misleads this Court:True Position: 12/22 bailed are minor operatives; kingpins (like Applicant) denied (Vipin Yadav distinguished - no Rs.4000 crore scam there).Laxminarayan Bansal: Voluntarily cooperated pre-arrest (NBW issued 22.05.2025 for investigation aid, not trial); a....
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....aghel Developers have surfaced as bogus or facade entities, contrived and used at the instance of the Applicant for parking and layering tainted funds. This corroborated chain of oral and documentary evidence satisfies the threshold laid down in Haricharan Kurmi and Nimmagadda Prasad v. CBI, negating any need for a mini-trial at the bail stage. The statutory ingredients of the offences are, therefore, clearly made out even at this preliminary stage: Section 120-B IPC: A common design is evident from the coordinated routing and parking of funds, demonstrating a shared criminal agreement implemented over several years. Sections 420,467,468, 471 IPC: Forged holograms and related fabricated documents were generated and routed through the Applicant's network as part of the scam architecture. Sections 7 and 12 of the Prevention of Corruption Act: The record discloses systematic abetment of corrupt acts through a nexus of political and official actors, operating for the benefit of the Applicant and his associates. Imminent; Delay Attributable to Applicant There is, therefore, no infraction of Article 21 in continuing the Applicant's custody. The investigation is nearing completion: six ch....
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....unt in bail calculus. Bank Entries Affirm Direct Infusion: Vitthalpuram Residential Complex accounts unmistakably establish tainted funds infusion via large, unexplained cash receipts-matching scam collections in timing/quantum. Cash layered as unsecured loans/advances/sham receipts, integrating proceeds into real estate. Applicant: principal beneficiary and money-launderer. 3. "No Search/Recovery" Red Herring: Irrelevant in Financial Scams Physical recovery immaterial in documentary money-laundering rackets:ED search (18.07.2025): Bank documents/ledgers confirming layered laundering. EOW remand (24.09.2025-06.10.2025): Revealed non-cooperation + custodial confrontation; witness intimidation (not recovery). Y.S. Jagan Mohan Reddy v. CBI, (2013) 7 SCC 439 wherein it has been held that Custody decodes financial trails, not yields seizures. 4. Further Investigation Judicially Sanctioned & Chargesheets Accepted. 37. Applicant's "void ab initio" trope rejected. Special Court accepted deemed chargesheets (main + 5 supplements) sans demurrer; permission u/s 173(8) BNSS implied. Applicant's Cr.M.P. 2654/2025 dismissed (28.08.2025)-suppression proves abuse of pr....
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....e impugned order dt. 08.10.2025. Public interest outweighs private liberty VIII. BANK ENTRIES ESTABLISH DIRECT INFUSION AND UTILIZATION OF SCAM PROCEEDS 39. It is specifically reiterated that the bank account entries of the applicant's firm, Vitthalpuram Residential Complex unmistakably establish the infusion of tainted funds in exchange for large, unexplained cash receipts. These cash inflows match, in timing and quantum, the cash collections generated from the liquor scam and routed through the syndicate's channels. The investigation has disclosed that such cash was systematically introduced into the banking system in the guise of unsecured loans, advances or sham business receipts, thereby layering and integrating the proceeds of crime into the Applicant's real estate project. These facts belie the attempt of the Applicant to portray himself as a mere bystander and instead affirm his role as a principal beneficiary and money-launderer. The Applicant further utilized these unaccounted proceeds to finance goods, services and construction- related payments for his private project, thereby not only legitimizing black money but also causing substantial loss of tax and excise re....
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....r, has coerced, threatened and intimidated material witnesses with the express object of compelling them to retract, dilute or resile from their earlier statements. This pattern of conduct is not speculative; it is borne out from the record. Witnesses have specifically narrated how pressure was brought upon them through visits, phone calls and intermediaries, with a clear message that adverse testimony against the Applicant would invite serious consequences. 42. In Krishna Mochi v. State of Bihar, (2002) 6 SCC 81, the Supreme Court poignantly noted the inherent vulnerability of witnesses when confronted with powerful, politically connected accused persons and cautioned that courts must factor in the real likelihood of intimidation and repression. The present case is a textbook application of that dictum, given the Applicant's enormous financial muscle, political connections and familial influence. In these circumstances, the apprehension that the Applicant will tamper with evidence and browbeat witnesses is not a mere allegation of the prosecution; it is a well-founded, evidenced reality. Grant of bail in such a situation would send a message of impunity and irreparably damage t....
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....cial co-conspirators whose roles, when read together, underscore the Applicant's central position: a. Mrs. Soumya Chaurasia - Initially posted as Sub-Divisional Officer and later as Commissioner, Bhilai-Charoda Municipal Corporation, she was subsequently elevated as Deputy Secretary in the Chief Minister's Office. Her proximity to the highest executive authority and her strategic positions made her a vital conduit for policy and administrative facilitation of the scam. b. Shri Anil Tuteja, IAS - A senior IAS officer closely aligned with the then political leadership, who played an instrumental role in orchestrating administrative manoeuvres that enabled the smooth functioning of the illicit system. His bureaucratic influence and access to departmental structures fortified and insulated the conspiracy. Shri Anwar Dhebar - An influential politician and brother of the then Mayor of Raipur Municipal Corporation. He acted as a central channel for movement of illegal cash, coordinating between distilleries, syndicate managers and political beneficiaries. These roles, taken cumulatively, demonstrate that the Applicant was not an incidental participant but sat at the apex of a pyr....
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.... findings are supported by the statements of Probir Sharma, Rajesh Bisen, Vimal Kumar Tiwari, Santosh Aggarwal, Rajendra Kumar Aggarwal and Rakesh Dondhi, whose testimonies, when read together with the bank and ledger records, constitute strong prima facie evidence of the Applicant's role as a principal money-launderer and financial architect of the scam. X. SYSTEMATIC INTIMIDATION OF WITNESSES - GRAVE RISK OF TAMPERING AND OBSTRUCTION 49. During the course of investigation, it has emerged from multiple independent sources, including statements of key witnesses, that the applicant, acting in tandem with his highly influential father, has coerced, threatened and intimidated crucial witnesses with the object of compelling them to retract, dilute or resile from their earlier statements. Witnesses have specifically stated that they were approached and warned against supporting the prosecution version, and were pressured to modify or withdraw their cooperation with the investigating agency. This conduct is not an isolated allegation but a consistent pattern, which shows a deliberate design to obstruct, derail and contaminate the investigation. Such interference strikes at the very....
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.... liquor scam; The risk of witness intimidation and evidence tampering is real, established and continuing; and the gravity, magnitude and societal impact of the offence, coupled with the Applicant's influence and conduct, render this a case wholly unfit for grant of bail. It is, therefore, respectfully prayed that this Court may be pleased to reject the present bail application and affirm the order dated 08.10.2025 passed by the Learned Special Court (PC Act), Raipur, in the interest of justice and public interest. 52. Formally Structured, Politically Shielded Liquor Scam (2018- 2023) 1.1 The investigation has now conclusively revealed that between 2018 and 2023, during the tenure of the then political dispensation, a formally structured, politically protected, State-wide liquor scam was executed in Chhattisgarh. The scheme was not a series of isolated acts, but a cohesive and centrally coordinated criminal enterprise. 1.2 The material on record demonstrates that bureaucratic officials, political representatives and select private individuals operated as members of an organized syndicate, each performing defined roles at different stages of the excise chain-pol....
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....eculative; it is grounded in concrete instances of: Coercion, threats and inducements extended to key witnesses; Efforts to influence or neutralize co-accused and couriers involved in cash transportation; and the Applicant's demonstrated inclination to obstruct, derail and contaminate the evidentiary process. In such circumstances, the settled principles governing bail in serious economic offences and corruption cases (including Gulabrao Babukar Deokar v. State of Maharashtra and Y.S. Jagan Mohan Reddy v. CBI) squarely support the State's contention that the risk of witness intimidation and evidence tampering is both real and grave, and that continued custody is necessary to secure the ends of justice. 57. Overall Impact and Necessity of Continued Custody. The cumulative effect of the evidence-documentary, financial and testimonial-shows that: The Applicant was at the heart of a State-wide corruption grid, functioning as one of the top-tier commanders; He personally supervised the financial architecture and ensured the movement, parking and utilization of illicit proceeds; and the scam has caused an unprecedented loss of approximately Rs.4000 crores to the State exchequer, grave....
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....orded during investigation and alleged linkages drawn by the investigating agency. 62. Notably, the applicant was not named in the First Information Report nor does the FIR attribute any direct, specific or overt role to the applicant in the alleged offence. The allegations sought to be levelled against the applicant would necessarily require a detailed appreciation of evidence, examination of witnesses and scrutiny of documentary material which lies exclusively within the domain of the trial. It is well settled that such an exercise is wholly impermissible at the stage of consideration of a bail application, as bail proceedings cannot be converted into a mini-trial. 63. Investigation was initiated by the Police/EOW/ACB and the applicant was arrested on 24.09.2025 in connection with the FIR No. 04/2024 dated 17.01.2024. The investigation as informed, is substantially complete and custodial interrogation of the applicant is no longer required. The material relied upon by the prosecution is largely documentary in nature and is already in the custody of the investigating agency. 64. In the first charge-sheet filed by the Economic Offences Wing (EOW) in Crime No. 03/2024, the ....
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....ion in a case of this nature would amount to punishment before conviction and would plainly violate the applicant's fundamental right to a speedy trial guaranteed under Article 21 of the Constitution of India. 69. Adding to the procedural infirmities, the EOW has proceeded with further investigation and filing of supplementary reports without obtaining prior permission of the competent court, contrary to the law laid down by the Hon'ble Supreme Court in Vinay Tyagi, Vinubhai Haribhai Malaviya, and Robert L. Chonthu @ R.L. Chonthu (supra). Such deviation further weakens the sanctity of the prosecution's case. 70. The allegations sought to be levelled against the applicant would require meticulous appreciation of evidence, examination of a vast body of witnesses and scrutiny of voluminous records, an exercise which can only be undertaken during trial. It is trite law that bail proceedings cannot be transformed into a mini-trial. Viewed cumulatively-absence of the applicant's name in the FIR, consistent non-arraignment in first charge-sheet and thereafter five supplementary charge sheets, lack of recovery, completion of investigation, grant of bail to similarly placed co- accuse....
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....s issued by the Special Court, in this case against Mr. Lakshmi Narayan Bansal and the same was available to the Investigating Officer, he merely recorded the statement of the co-accused LNB, without effecting his arrest and let him escape, such actions constitute a grave violation of law. Therefore, this Court direct the Director General of Police of the State to look into this matter and issue appropriate directions to all the police officers across the State and ensure that similar violations do not occur in future. 77. Having bestowed anxious consideration to the material placed on record, and with due deference to the imperatives of investigation, this Court, without venturing into the merits of the matter, is of the considered opinion that no compelling or justifiable reason now survives for the continued incarceration of the applicant. The ends of justice, in the facts and circumstances of the case, would be sufficiently safeguarded by enlarging the applicant on bail. 81. Accordingly, the present bail application deserves to be and is hereby allowed. It is directed that the applicant shall be released on bail upon his furnishing a personal bond in the sum of Rs.1,00,00....