The Supreme Court has recently instructed ED to halt all actions in a money laundering case related to an alleged ₹2,000 crore liquor scam in Chhattisgarh.
A bench comprising Justices S.K. Kaul and Sudhanshu Dhulia issued the order in response to petitions challenging the legality of the proceedings initiated by the anti-money laundering agency in the case.
The Bench directed, “Apart from the order already passed of no coercive action, the respondent authorities must stay their hand in all manner.”
During the hearing on May 16, the Supreme Court cautioned the ED against creating an “atmosphere of fear” after the Chhattisgarh government accused the probe agency of acting recklessly and attempting to implicate Chief Minister Bhupesh Baghel in a money laundering case linked to the liquor scam in the state.
Senior advocate Kapil Sibal, representing the Chhattisgarh government, alleged that state officers were being harassed by the probe agency.
Senior advocate A.M. Singhvi, representing some of the petitioners, urged the court to stay the ongoing ED investigation, questioning the basis for the investigation without a predicate offense.
The court told Additional Solicitor General S.V. Raju, for ED that, “Hold your hands in the meantime…. We are not taking a final view.”
Earlier, the ED court about a substantial scam in the liquor trade of Chhattisgarh, allegedly involving high-level state government officials, private individuals, and political executives, resulting in the generation of over ₹2,000 crore of illicit funds between 2019 and 2022.
Previously, Chhattisgarh filed the first-ever state-level challenge in the Supreme Court, questioning the constitutional validity of certain provisions of the Prevention of Money Laundering Act (PMLA). The state claimed that central investigating agencies were being misused to intimidate and harass non-BJP ruled states.
