Supreme Court Grants Interim Bail To Former Chhattisgarh Excise Minister Kawasi Lakhma In Liquor Scam Cases

The Supreme Court on Tuesday granted interim bail to former Chhattisgarh excise minister and present Congress MLA Kawasi Lakhma in two cases connected with the Chhattisgarh liquor scam.

The Court granted him relief in the case under the Prevention of Corruption Act being handled by the Economic Offences Wing/Anti-Corruption Bureau as well as the connected money laundering case being investigated by the Enforcement Directorate.

As part of the bail conditions, Lakhma is prevented from entering the State of Chhattisgarh, except to attend the Court proceedings. When the Court was told that he was a sitting MLA and that he is required to attend the Assembly meeting, the Court said that the Speaker can take a decision on that after chargesheet/prosecution complaint is filed or after the Court has taken cognizance.

A bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice Vipul Pancholi granted the relief after noting the period of incarceration as well as the remote possibility of the early conclusion of the trial. He was arrested on January 15, 2025, by the ED and on April 2, 2025, by the EOW and has been under custody ever since his January 15, 2025.

The prosecution proposed to examine 865 witnesses in the EOW case and 117 witnesses in the ED case.

The Court also noted that investigation against many other accused is pending. Hence, the investigation itself is likely to take a long time, the Court noted, while adding that it is not advisable to set a time limit for the investigation when complex issues involving several persons are involved.

The Court observed in the order :

"Indefinite incarceration may infringe rights flowing from Article 21 of the Constitution. In order to balance the competing claims from both sides, we deem it appropriate to issue the following interim directions, subject to their modification, if so required, in future :

i. The petitioner is directed to be released on interim bail in both cases registered by the EOW and the ED, respectively.

ii. He shall be required to furnish bail bonds to the satisfaction of the Special Judge

iii. In addition to the conditons that may be imposed by the Special Judge, it is directed that the petitioner shall not enter the State of Chattisgarh except to attend the Courts.

iv. The petitioner shall not seek and not be granted exemption from personal appearance save and except of health grounds.

v. The petitioner shall not travel abroad and his passport shall stand deposited in the Court of Special Judge.

vi. The petitioner shall disclose his place of stay, along with contact number, so that the jurisdictional police station as well as the ED officer can find his whereabouts. The petitioner shall furnish his mobile number and such number shall not be changed without the permisison of the Spl Judge.

vii.As regards the petitioner's participation in the legislative assembly, during the period when the chargesheet is filed and/or the Court takes cognizance of it, an appropriate decision shall be taken by the learned Speaker of the State Assembly. We do not express any opinion on that.

viii. The petitioner shall be entitled to participate in public events and functions, however he shall refrain from making any statement on the allegations which are either subject matter of the chargesheet/prosecution complaint or under investigation. This however will not be an impediment for the petitioner to assail those charges before any judicial forum.

ix. The petitioner shall not make any direct or indirect attempst either to influence the witnesses or to tamper evidence.

Breach of any of the conditions shall be taken as misuse of the concession of bail, warranting necessary consequences."

Senior Advocate Mukul Rohatgi, for Lakhma, submitted that there was no recovery from him and the alleged money trail has not been traced. Apart from confessional statements, there is no other evidence against him, he argued. He added that many co-accused persons have been granted bail. Senior Advocate Siddharth Dave also appeared for Lakhma.

Senior Advocate Mahesh Jethlamalani, for the State, submitted that there was evidence of the petitioner taking kickbacks for excise policies and that he was receiving Rs 2 crores of bribe money a month. Additional Solicitor General SV Raju for the ED said that the agency has recovered Rs 72 crores so far.

Case : KAWASI LAKHMA Vs STATE OF CHHATTISGARH | SLP(Crl) No. 16980/2025