Supreme Court Refuses To Cancel Chaitanya Baghel's Bail In Liquor Scam Case

The Supreme Court today refused to cancel the bail granted to Chaitanya Baghel, son of former Chief Minister Bhupesh Baghel, in connection with two cases linked to an alleged ₹3,000 crore liquor scam.

A CJI Surya Kant led bench refused to entertain the plea filed by Chhattisgarh government. However, the bench agreed to expunge certain remarks made by the High Court in the impugned order.

Senior Advocate Mahesh Jethmalani, appearing for the state government told the bench also comprising Justices Bagchi and Mohana, "The High Court has made unnecessary strictures against the investigating agency. He was not even in incarceration for long. Sometimes best judgements seem to come when powerful people are involved. That should not be the case."

 "The remarks made by the HC which tend to cast aspersion on prosecution is completely uncalled for and hereby expunged. All issues are kept open," the CJI ordered accordingly.

The High Court while granting bail to Chaitanya had remarked that the investigation was largely documentary in nature and that Chaitanya had been in custody for an extended period. The single judge bench indicated that the evidence collected by the ED, including statements under the Prevention of Money Laundering Act (PMLA) Section 50 and financial and digital records, would be evaluated during the hearing, and this would not be the final assessment at the bail stage.

The High Court further noted that the evidence relied upon by the ED did not reveal any documents, official communications, financial instruments, bank accounts, or properties linked to the applicant that would demonstrate direct involvement in the crime's proceeds. It stated, "Although it was alleged that the applicant was at the 'top' of the syndicate, no contemporaneous documentary evidence was presented to indicate the applicant's control over purchasing decisions, commission rates, tender allocations, liquor transportation, or cash collection."

While granting bail, the court imposed certain conditions, including the requirement to surrender any passport, if applicable, and to regularly appear before the trial court, along with filing an affidavit to assist in the swift resolution of the case. The High Court also stated that failure to cooperate or violation of conditions could result in the revocation of bail.

Supreme Court is also seized of a plea filed by Chaitanya Baghel challenging his arrest in a liquor scam case. Baghel has also approached the court with a petition challenging Sections 50 and 63 of the Prevention of Money Laundering Act (PMLA) for violation of fundamental rights guaranteed under the Constitution of India.

Bhupesh Baghel and his son Chaitanya Baghel are both accused in the alleged liquor scam of Chhattisgarh. Baghel's son, Chaitanya Baghel has also been arrested in a money laundering case. ED has alleged that Chaitanya was involved in handling over Rs 1,000 crore of illegal money made from the suspected liquor scam in the state. ED claims he used Rs 16.7 crore for developing his real estate project.

Chaitanya Baghel has also challenged the October 17 order of the Chhattisgarh High Court that dismissed his plea against arrest. The High Court had said that the ED conducted further investigation without mandatory permission of the jurisdictional court, but the same was only a procedural irregularity.

Case Title: State of Chhattisgarh vs Chaitanya Baghel

Bench: CJI Kant, Justice Bagchi and Justice Mohana

Hearing Date: July 22, 2026