Chhattisgarh excise officer changed policy resulting in Rs 2,000-crore scam: ED

Arun Pati Tripathi, the Special Secretary in Chhattisgarh Excise Department, was responsible for making changes.

In the policy which led to a Rs 2,000-crore scam in the state, the Enforcement Directorate alleged. Tripathi was arrested by the ED on May 12 under the Prevention of Money Laundering Act (PMLA) in the ongoing investigation into the liquor scam in Chhattisgarh.

Tripathi is from the Indian Telecom Services and is working with the Chhattisgarh government for the last seven years. He is the Managing Director of state body – Chhattisgarh State Marketing Corporation Limited (CSMCL) and has the charge of Special Secretary, Excise Department, Chhattisgarh.

The ED is investigating the liquor scam which happened between 2019 to 2022 in which corruption happened in four ways: 1) Bribe was collected from the distillers per each Case of liquor procured from them by the CSMCL (state body for the purchase and sale of liquor), 2) Sale of unaccounted kacha off-the-books country Liquor. In this case, not even a rupee reached the state’s exchequer, and all the sale proceeds were pocketed by the syndicate. The illegal liquor was sold from state-run shops only, 3) Bribes taken from distillers to allow them to make a cartel and have fixed market share and 4) Commission from FL-10A license holders who were introduced to earn in Foreign liquor segment also.

“The ED investigation revealed that Arun Pati Tripathi, through his direct actions at the insistence of Anwar Dhebar, corrupted the entire liquor system of Chhattisgarh to maximise corruption in the department. He made policy changes in conspiracy with his other colleagues and gave tenders to associates of Anwar Dhebar so that maximum benefits could be taken under the four ways,” said the ED.

Despite being a senior ITS Officer and MD of CSMCL, he allegedly went against the ethos of the functioning of any state excise department and used the state-run shops to sell unaccounted for kacha liquor.

“His complicit actions resulted in massive loss to the state exchequer and filled the pockets of the beneficiaries of the liquor syndicate with more than Rs 2,000 crore illegal proceeds of crime. He also received substantial share in this loot. Thus, the very objective of CSMCL to increase the state’s revenue and to provide quality controlled liquor to citizens were violated by him for his personal illegal gains,” the ED added.

The ED has also arrested Dhebar, Nitesh Purohit and Trilok Singh Dhillon in this case. All have been sent to the ED’s custody till May 19.

Earlier, the ED conducted search operations at several locations in Raipur, Bhilai and Mumbai which resulted in discovery of a 53 acres of land in Naya Raipur (having book value of Rs 21.60 crore) acquired by Anwar Dhebar by using proceeds of crime in the name of a joint venture. This property was allegedly purchased through a maze of transactions in the name of an associate by routing proceeds of crime acquired from FL-10A licensee.

During recent search proceedings, the ED seized cash worth Rs 20 lakh and multiple incriminating documents. In searches at Mumbai, unaccounted investments worth around Rs 1 crore, with a share trading firm in the name of Arvind Singh and Pinki Singh were frozen under PMLA.

Earlier, the ED had frozen fixed deposits worth Rs 27.5 crore from Trilok Singh Dhillon and seized jewellery worth Rs 28 crore from the house of a country liquor distiller.