MLA Kawasi Lakhma did nothing to stop liquor scam in Chhattisgarh, assisted syndicate: ED

New Delhi: The Enforcement Directorate Friday said that Chhattisgarh Congress MLA and former minister Kawasi Lakhma "did nothing" to stop an alleged liquor scam of more than Rs 2,100 crore that took place in the state during the previous government.

The 67-year-old Lakhma was arrested by the federal probe agency on January 15 after questioning in this case in state capital Raipur and a court has sent him to ED custody till January 21.

Lakhma is a six-time MLA from the Konta assembly seat and has served as the excise minister in the Congress government led by chief minister Bhupesh Baghel.

"Kawasi Lakhma was aware of the complete affairs of the excise department including the liquor scam, yet he did nothing to stop the illegal and unauthorised operations.

"He played an important role in policy change which led to the introduction of FL-10A license in the state of Chhattisgarh," the ED alleged in a statement.

The FL-10A licence of the Chhattisgarh government allowed license holders to earn in the foreign liquor segment.

Lakhma, while being produced by the ED in the court, had told reporters that no documents or even a single penny were found during the raids conducted against him by the agency.

"I am being sent to jail in a false case," he had said.

The ED statement added that Lakhma was "an integral part" of the syndicate (liquor) and "actively assisted" it by "maneuvering process and procedures as per their direction." It further claimed that Lakhma was receiving "not less than" Rs 2 crore per month out of the proceeds of crime being generated out of the liquor "scam" that took place between 2019-2022.

The agency claimed it has been able to collect "evidence" linking the use of proceeds of crime obtained by Lakhma in construction of immovable properties.

The ED said the Chhattisgarh liquor "scam" resulted in "massive loss" to the state exchequer and filled the pockets of the beneficiaries of the liquor syndicate with more than Rs 2,100 crore of illegal proceeds of crime.

The central agency had on December 28 raided the properties of the former minister and his son in Raipur, Sukma and Dhamtari districts. It subsequently questioned Lakhma and his son.

Congress leader and former chief minister Bhupesh Baghel had accused the ED, after it arrested Lakhma, of acting on the directives of the BJP-led Union government.

"The arrest of former minister and senior MLA Kawasi Lakhma ji is an action taken with the intention of political vendetta. On the instructions of its masters sitting in the central government, the ED has been conspiring to defame Congress leaders. The entire Congress party stands with Kawasi Lakhma ji," Baghel had posted on X.