Supreme Court grants interim bail to Chhattisgarh ex-minister Kawasi Lakhma in liquor scam

The Supreme Court on Tuesday granted interim bail to Chhattisgarh Congress MLA and former Excise Minister Kawasi Lakhma in money laundering and corruption cases linked to the liquor scam in the State.

A Bench of Chief Justice of India Surya Kant and Justices Joymalya Bagchi and Vipul Pancholi granted relief to Lakhma in cases registered under the Prevention of Corruption Act being probed by Economic Offences Wing (EoW) and the Prevention of Money Laundering Act launched by the Enforcement Directorate (ED).

The Court noted that Lakhma has been in jail since January 2025 and the trial is unlikely to conclude any time soon since prosecution proposes to examine 1,193 witnesses.

The Court also noted that 19 accused have already been granted bail.

"It may thus be seen that petitioner is in custody since January 5, 2025 and April 2, 2025. There are 52 accused out of whom 22 are arrested. 19 have been released on bail. Having regard to multitude of allegations and the scam which engulfed the state and other parts of the country and the multiple cases against several accused persons, in all the prosecution has proposed to examine 1,193 witnesses. Investigation is likely to take a reasonably long time in a matter which has important and complex questions and hurried trial can have adverse impact on prosecution case," the Court noted while granting him interim bail.

However, as bail conditions, the Court ordered that Lakhma shall not enter the State of Chhattisgarh except for attending the courts proceedings for which he shall reach a day before the hearing.

Further, he shall not be granted exemption from personal appearance before trial court save and except on health grounds. He shall also not travel abroad and passport shall be submitted to the court of special judge, the top court ordered.

The Court also said that Lakhma shall be allowed to take part in public events but he shall not make any statement with respect to the allegations he face.

Lakhma is accused of receiving ₹72 crores as kickbacks. He is accused of using it for construction of buildings.

Lakhma was arrested by ED in January 2025 and has been in custody since then. He was denied bail by the courts below including the Chhattisgarh High Court.

This led to the appeal before the Supreme Court.

Before the top court, Senior Advocate Mukul Rohatgi, appearing for Lakhma, contended that there was no recovery of proceeds or money trail connecting him to the allegations.

"There is no recovery or money trail from me. The allegation is that I was getting kickbacks for construction etc either of my house or party office. The entire case is based either on section 161 statements which are of domestic staff including cooks etc or some of section 164. Apart from confession of co accused there is no intrinsic material. Thus trial is not possible," it was pointed out.

Further, he also sought parity with 19 other accused who were granted bail.

"There are 52 accused. 22 were arrested. 19 were granted bail and some by Supreme court and some are chargesheeted even without arrest," it was submitted by Rohatgi.

The counsel for Lakhma also argued that there are 1,193 witnesses and the trial will take a long time to conclude.

"So ED arrested me 13 months ago and several chargesheets has been filed and investigation with respect to me is complete. There are 1,193 witnesses," the counsel argued.

Senior Counsel Mahesh Jethmalani argued that the offence was grave and cost the State exchequer crores.

"These intermediaries has costed ₹220 crores to the state exchequer. This emasculates the state exchequer. The nature of the offence is grave and evidence is also revealing," he contended.

He further said that there is digital evidence to support the allegations and the case is not solely about oral evidence and witness statements.

"This is not a case of oral evidence. It is also about digital evidence. There was manipulation and receipt of money also in the transport tender," he argued.

Additional Solicitor General SV Raju said that the delay in probe and trial can be attributed to the accused.

Senior Advocates Mukul Rohatgi and Siddhartha Dave along with advocates Mayank Jain, Harshwardhan Parghaniha, Madhur Jain, Arpit Goel and Anshul Rai appeared for Lakhma.

Senior Advocate Mahesh Jethmalani appeared for the State government while Additional Solicitor General SV Raju appeared for the Enforcement Directorate.

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