In the continuing money laundering investigation into the Chhattisgarh liquor scandal, the Directorate of Enforcement (ED) detained Arun Pati Tripathi on 12.5.2023 under the provisions of the PMLA 2002. Arun Pati Tripathi works for Indian Telecom Services and has been in Chhattisgarh for 7 years. He is the Managing Director of the state-owned Chhattisgarh State Marketing Corporation Limited (CSMCL) and the Special Secretary of the Chhattisgarh Excise Department.
The ED is investigating a spirits fraud that occurred between 2019 and 2022 and involved numerous forms of wrongdoing :
In Part A of the scam, bribes were collected from distillers for each case of liquor procured by the CSMCL (State body for the purchase and sale of liquor). Part B involved the sale of unaccounted “kacha” off-the-books Country Liquor, where none of the proceeds reached the State Exchequer and was instead pocketed by the Syndicate. This illegal liquor was exclusively sold through State-run shops. Part C focused on commissions received from distillers to allow them to form a cartel and secure a fixed market share. Additionally, there were commissions earned from FL-10A License Holders in the foreign liquor segment.
An ED probe found that Arun Pati Tripathi, at the request of Anwar Dhebar, compromised the whole Chhattisgarh liquor system in order to maximise corruption in the department. He changed policy in collusion with his colleagues and awarded bids to Anwar Dhebar associates in order to maximise advantages under the PART-A, PART-B, PART-C, and FL10A headings.
Despite being a senior ITS Officer and the MD of CSMCL, he violated the principles of any State Excise Department by selling unaccounted kacha liquor through State-run stores. His complicity resulted in a large loss to the State Exchequer and filled the wallets of the Liquor Syndicate’s benefactors with more than Rs 2000 Crore in unlawful profits of crime. He also received a large portion of the wealth. Thus, he violated CSMCL’s core goal of increasing state income and providing quality regulated spirits to residents for his personal illicit benefits.
He was detained on 12.5.2023 and brought before the PMLA Special Court in Raipur, where he was given 3 days of ED custody for questioning, which was later extended to 19.05.2023.
The ED also brought Anwar Dhebar, Nitesh Purohit, and Trilok Singh Dhillon before the PMLA Special Court, and their ED custody was extended till May 19, 2023.
The ED undertook subsequent search operations in Raipur, Bhilai, and Mumbai, which led to the discovery of a 53-acre plot of land in Naya Raipur (with a book value of Rs 21.60 crore) obtained by Anwar Dhebar using proceeds of crime in the name of a JV. This property was acquired through a series of transactions in the name of an accomplice by rerouting proceeds of crime obtained from an FL-10A licensee. During recent search warrants, the ED seized Rs 20 lacs in cash and several damning papers.
Unaccounted investments worth around Rs 1 crore were discovered during searches in Mumbai with a Share trading business in the name of Arvind Singh and Pinki Singh w/o Arvind Singh, and the funds have been frozen under the PMLA. Previously, the ED has frozen Trilok Singh Dhillon’s Fixed Deposits worth Rs 27.5 crore. Previously, the ED recovered Rs 28 crore in jewels from the home of a Country Liquor Distiller. More research is being conducted.
