Kawasi Lakhma Aware of Liquor Scam Yet Remained Passive, ED Investigation Uncovers

Synopsis
Key Takeaways
- Kawasi Lakhma was aware of the liquor scam.
- Arrested under PMLA provisions.
- The scam caused over Rs 2,100 crore loss to the state.
- Bribes were collected from distillers.
- Illegal sales of kacha liquor were a major revenue source.
Raipur, Jan 17 (NationPress) The Enforcement Directorate (ED), Raipur Zonal Office, has disclosed that MLA Kawasi Lakhma, who was recently apprehended by the agency, was cognizant of the liquor scam during his stint as the Excise Minister in Chhattisgarh, yet chose not to take any action, according to a statement.
The ED took Lakhma into custody on January 15 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the Chhattisgarh liquor scam. He was subsequently presented before the PMLA court in Raipur, which has permitted the ED to hold Lakhma for six days, until January 21.
The inquiry is based on an FIR lodged by the Anti-Corruption Bureau (ACB) and Economic Offences Wing (EOW) in Chhattisgarh under various sections of the Indian Penal Code, 1860, and the Prevention of Corruption Act, 1988.
As per the ED, Lakhma not only had knowledge of the illegal operations within the Excise Department but also failed to take corrective measures. He is alleged to have played a significant role in policy modifications, like the introduction of the FL-10A license in Chhattisgarh, which facilitated the scam.
Lakhma is purportedly an essential member of the syndicate, actively engaged in manipulating processes to benefit the group.
The ED claims that Lakhma allegedly received at least Rs 2 crore monthly from the illicit proceeds. These funds were reportedly utilized to purchase immovable assets, with evidence linking the proceeds of crime (POC) to these investments.
The ED's inquiry has revealed multiple mechanisms by which the scam operated between 2019 and 2022.
Firstly, the ED reports that bribes were amassed from various distillers for each case of liquor procured by the Chhattisgarh State Marketing Corporation Limited (CSMCL).
Secondly, illegal sales of unaccounted “kacha” liquor generated substantial revenue for the syndicate, with none of the proceeds reaching the state treasury. This illegal liquor was marketed through state-run outlets.
Thirdly, bribes were taken from distillers to facilitate cartelization and allocate fixed market shares.
Additively, commissions were received from license holders introduced in the foreign liquor sector.
The ED estimates that the scam resulted in a staggering loss to the state exchequer, amounting to over Rs 2,100 crore, which was misappropriated by the syndicate.
The ED had previously detained several individuals connected to the case, including former IAS officer Anil Tuteja, Arvind Singh, Trilok Singh Dhillon, Anwar Dhebar, and Arun Pati Tripathi.