In a move with huge political shockwaves, federal agents on Friday arrested Chaitanya Baghel, the son of Chhattisgarh’s former Chief Minister, Bhupesh Baghel.
The arrest is tied to a sprawling investigation into an alleged liquor scam that flourished under his father’s government. ED agents took Chaitanya into custody during an early morning raid on his home in Bhilai and later secured his custody until July 22 for questioning.
The arrest follows a string of investigations into what the agency claims was a multi-crore liquor scam that flourished between 2019 and 2022. Officials say approximately ₹2,174 crore worth of unaccounted and tax-evaded liquor was sold across government-run outlets during that period.
According to the ED’s remand application, Chaitanya allegedly received ₹16.7 crore in illicit funds via two firms linked to him. One of them, M/s Saheli Jewellers, reportedly transferred ₹5 crore, with ₹4.5 crore still unpaid and interest-free. Investigators say that indicates the funds may have been disguised bribes or laundered cash.
The ED further alleges Chaitanya was involved in routing money into real estate using front companies. Particular focus has been placed on a housing project under M/s Baghel Developers, where suspicious funding patterns have emerged.
The agency claims businessman Trilok Singh Dhillon helped route ₹5 crore into Baghel Developers by booking 19 flats under the names of his employees. The employees later admitted they were acting as proxies, suggesting that Chaitanya was the actual beneficiary.
Statements from Laxmi Narayan Bansal, who is also under investigation, were cited in court. He allegedly confessed to laundering over ₹1,000 crore from the scam and named Chaitanya among those he coordinated with.
The ED says other firms—including entities connected to Raipur’s City Mall—are also under scrutiny for questionable investments into projects linked to Chaitanya.
Bhupesh Baghel, responding publicly, said the arrest was politically driven and aimed at silencing opposition to corporate interests. “This is the price of speaking out against Adani in Chhattisgarh,” he said, referencing ongoing disputes over deforestation in Tamnar for a coal project.
He pointed out that no summons or notice had been served to his son since a raid in March, and questioned why a direct arrest was made without prior interrogation.
Chaitanya’s lawyer, Faisal Rizvi, echoed those concerns. He argued that Chaitanya was never formally questioned and had not been named in any of the agency’s earlier complaints. “This arrest is based solely on a statement from a co-accused after a non-bailable warrant was issued against him,” he said.
Congress lawmakers staged a walkout from the state assembly on Friday to protest the arrest. The party claimed it was an attempt to distract from growing criticism over environmental issues in Raigarh district.
The liquor scam case has already led to the arrest of several individuals including former minister Kawasi Lakhma, senior bureaucrats, and businessmen. The ED claims the proceeds of the scam were distributed under instructions from “the highest political executives of the state.”
The original complaint filed by the Income Tax Department was dismissed by the Supreme Court in 2023. A fresh investigation was launched in January this year, based on an FIR from the Chhattisgarh Economic Offences Wing. That case named 70 individuals and firms, including top Congress figures and bureaucrats.
So far, assets worth ₹205 crore have been attached as part of the ED’s investigation.
