Raipur, Jan 17 (IANS): The Enforcement Directorate (ED), Raipur Zonal Office, has revealed that MLA Kawasi Lakhma, recently arrested by the agency, was aware of the liquor scam during his tenure as the Excise Minister in Chhattisgarh but failed to intervene, a statement said.

The ED arrested Lakhma on January 15 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the Chhattisgarh liquor scam. He was presented before the PMLA court in Raipur, which has granted the ED custody of Lakhma for six days, until January 21.

The investigation stems from an FIR registered 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.

According to the ED, Lakhma was fully aware of the illegal activities within the Excise Department, including the liquor scam, but failed to act. He reportedly played a key role in policy changes, such as the introduction of the FL-10A license in Chhattisgarh, which facilitated the scam.

Lakhma is alleged to have been an integral part of the syndicate, actively assisting in manipulating processes and procedures to favour the group.

ED claims Lakhma received at least Rs 2 crore per month from the proceeds of the scam. These funds were allegedly used to acquire immovable properties, with evidence collected linking the proceeds of crime (POC) to such investments.

The ED investigation has identified several mechanisms by which the scam operated between 2019 and 2022.

First, according to ED, bribes were collected from various distillers for each case of liquor procured by the Chhattisgarh State Marketing Corporation Limited (CSMCL).

Second, illegal sales of unaccounted “kacha” liquor generated significant revenue for the syndicate, with no proceeds reaching the state exchequer. This illegal liquor was sold through state-run shops.

Third, bribes were accepted from distillers to facilitate cartelisation and allocate fixed market shares.

Also, commissions were taken from license holders introduced in the foreign liquor segment.

The ED estimates that the scam caused a massive loss to the state exchequer, amounting to over Rs 2,100 crore, which was siphoned off by the syndicate.

The ED had earlier arrested several individuals in connection with the case, including former IAS officer Anil Tuteja, Arvind Singh, Trilok Singh Dhillon, Anwar Dhebar, and Arun Pati Tripathi.