PMLA Case: ED Arrests Raipur Mayor’s Brother in Liquor Scam

Directorate of Enforcement (ED) has arrested Anwar Dhebar on 6.5.2023 under the provisions of PMLA 2002 in Liquor Scam of Chhattisgarh.. ED had earlier conducted searches at multiple locations in the month of March and has recorded the statements of various persons involved in the process and has collected evidences of unprecedented corruption and money laundering to the tune of Rs 2000 Crore between 2019 - 2022.

PMLA investigation revealed that an organised criminal syndicate led by Anwar Dhebar was operating in the State of Chhattisgarh . Anwar Dhebar, though a private citizen, was backed by and was working for illegal gratification of the high level political executives and Senior Bureaucrats. He weaved an elaborate conspiracy and stitched a wide network of persons/ entities to execute the scam so that money was illegally collected from every bottle of liquor sold in the State of Chhattisgarh. Revenue from liquor ( Excise Duty) is one of the highest contributor to State kitty. Excise Departments are mandated to regulate the supply of liquor, ensure quality liquor to users to prevent hooch tragedies and to earn revenue for the State. But investigation revealed that criminal syndicate led by Anwar Dhebar has turned upside down all these objectives.

In Chhattisgarh, state controls all the aspects of liquor trade from procurement to retail sale to consumer. No private liquor shops are allowed. All 800 liquor shops are run by the State. Chhattisgarh State Marketing Corporation Limited (CSMCL) centrally procures all the liquor sold in Chhattisgarh. CSMCL issues tenders for - Man-power suppliers who run the shops, Cash Collection Tenders, selects Bottle Makers & Hologram Makers.

With the support of the political executives, Anwar Dhebar managed to get a pliant Commissioner and MD of CSMCL, and hired close associates like Vikas Agarwal @Subbu & Arvind Singh to make the system completely subservient to him. He controlled the entire chain of the liquor trade starting from - Private Distillers, FL-10A License Holders, Senior Officers of Excise Dept, District level Excise Officers, Man-power suppliers, Glass Bottle makers, Hologram Makers, Cash - Collection vendor etc and leveraged it to extort maximum amount of bribes/commission. Various other stakeholders also illegally benefited in the process.

ED investigation has revealed that the Syndicate was benefiting in the following three different manners in Chhattisgarh. Firstly, a commission of Rs 75-150 per case (depending on type of liquor) was fastidiously charged by the Syndicate from the suppliers for each accounted cash procured by CSMCL. Secondly, Anwar Dhebar in conspiracy with the others, started getting manufactured unaccounted country made kacha off-the books liquor and selling the same through government run shops. This way they could keep the entire sale proceeds without depositing even 1 Rupee in the State Exchequer. Duplicate holograms were provided. Duplicate bottles were procured in cash. Liquor was transported directly from distiller to shops by-passing State warehouses. Man power was trained to sell unaccounted liquor. Entire sale was done in cash. Entire sale was off the books and sale consideration was siphoned off with every one in the illegal chain getting its share including - Distiller, Transporter, Hologram maker, Bottle maker, Excise official, higher echelons of Excise Dept, Anwar Dhebar, Senior IAS Officer(s) and Politicians. ED investigation has revealed that in the years 2019-2020-2021-2022, this kind of illegal sale was almost 30-40% of the total sale of the liquor in the State. This generated Rs 1200 - Rs 1500 Crore illegal profits.

It is estimated that in total Rs 2000 Crore was generated by the syndicate in a short span from 2019 to 2022. Anwar Dhebar is responsible for collection of this entire illegal money , but is not the ultimate beneficiary of this scam. It is established that after deducting a percentage, he had passed on the remaining amounts to his political masters.

Earlier, ED had conducted search operations at 35 locations across Chhattisgarh, West Bengal and Delhi including the residential premises of Anwar Dhebar. However, he slipped out of a secret trap door and did not participate in the search. He was summoned on 7 occasions, but did not join investigation. He was continuously using benami SIM Cards, Internet dongles, changing locations and after sustained surveillance was zeroed in a Hotel room of his close associate. There also, instead of accepting summons, he again tried to run away from the back door, but was caught while escaping by alert team of ED. He was duly arrested and produced today morning before the PMLA Special Judge of Raipur, who has remanded him to 4 days of ED Custody.

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