Supreme Court quashes money laundering case relating to Chhattisgarh liquor scam

New Delhi [India], April 8 : The Supreme Court on Monday quashed a money laundering case against accused persons in a matter relating to the Chhattisgarh liquor scam, observing that the complaint was based on an IT act offence, which is not a scheduled offence as per PMLA.
The Supreme Court remarked that there is a predicate offence, therefore, there cannot be proceeds of crime as well as no money laundering.
The order was passed by a bench of Justices Abhay S Oka and Ujjal Bhuyan.
The top court had directed ED not to take coercive steps against the petitioners including Anil and Yash Tuteja in a money laundering matter related to the Chhattisgarh liquor irregularities case.
ED investigation has revealed that Arun Pati Tripathi through his direct actions at the insistence of Anwar Dhebar, corrupted the entire liquor system of Chhattisgarh to maximize 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.
Despite being a senior ITS Officer and MD of CSMCL, he went against the ethos of the functioning of any State Excise Department and used the State-run shops to sell unaccounted kacha liquor, ED has alleged.
ED alleged that his complicit actions resulted in massive losses to the State Exchequer and filled the pockets of the beneficiaries of the Liquor Syndicate with more than Rs 2000 Crore in illegal proceeds of crime. He also received a 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 was violated by him for his personal illegal gains, read the official statement.
ED has conducted consequential search operations at locations in Raipur, Bhilai and Mumbai and the searches have resulted in the discovery of 53 acres of land in Naya Raipur having a book value of Rs 21.60 crore acquired by Anwar Dhebar by using proceeds of crime in the name of a JV.
This property was purchased through a maze of transactions in the name of an associate by routing proceeds of crime acquired from the FL-10A licensee. During recent search proceedings, ED has seized cash worth Rs 20 lacs and multiple incriminating documents, mentioned the official statement.
In searches in Mumbai, unaccounted investments worth around Rs 1 Crore, with a Share trading firm in the name of Arvind Singh and Pinki Singh w/o Arvind Singh were found and the same have been frozen under PMLA.
Earlier, ED had frozen Fixed Deposits worth Rs 27.5 Crore from Trilok Singh Dhillon. Earlier, ED had seized jewellery worth Rs 28 Crore from the house of a Country Liquor Distiller.