Senior Jharkhand IAS Officer and Excise Official Arrested in Multi-Crore Liquor Scam

Ranchi: In a significant development in the investigation into the multi-crore liquor scam linked to Chhattisgarh, the Anti-Corruption Bureau (ACB) has arrested senior Jharkhand IAS officer Vinay Kumar Choubey and Gajendra Singh, Joint Commissioner of the Excise Department. The arrests were made following a prolonged interrogation by ACB officials, who cited substantial evidence of wrongdoing.

According to the ACB, both officials were produced before the court and have been remanded to 14 days of judicial custody. Choubey, a former Excise Secretary of Jharkhand, is accused of misusing his official position and being involved in a forged liquor distribution network that allegedly caused a Rs 38 crore loss to the state exchequer.

Sources reveal that the roots of the scam trace back to late 2021, when discussions began among Jharkhand’s liquor traders regarding the introduction of a new excise policy for 2022–23. These discussions indicated a potential takeover of the liquor business by the Chhattisgarh-based liquor syndicate.

In a controversial move, the Excise Department appointed Chhattisgarh State Marketing Limited (CSML) as an advisor to enhance liquor revenues in Jharkhand. The government reportedly paid Rs 1.25 crore to consultant Arunapati Tripathi for framing the new excise policy.

However, the proposed policy drew criticism from Amarendra Prasad Singh, then a Revenue Board member, who opposed the plan and questioned the credibility of CSML—citing its failure to boost liquor revenue in its own state. He suggested multiple revisions, some of which were eventually incorporated before the policy was formally adopted.

With the rollout of the new excise policy, companies linked to the Chhattisgarh liquor syndicate rapidly took control of Jharkhand’s liquor trade. The tendering process restricted wholesale distribution to just two companies, Ishita and Omsai, while Prism—a firm with known links to the syndicate—was awarded the contract for producing mandatory bottle holograms. Additionally, contracts for manpower at government-run retail outlets were also handed to Chhattisgarh-based firms.

The new policy adversely affected local liquor manufacturers in Jharkhand. Previously allowed to sell in plastic bottles, these companies were now required to use glass bottles, leading to the shutdown of several local bottling units. This change reportedly allowed the Chhattisgarh syndicate to flood the Jharkhand market with its stockpiled liquor.

Attempts by the syndicate to forge alliances with Jharkhand-based manufacturers largely failed, prompting reports of coercion and harassment by excise officials. As enforcement agencies ramped up their probe, and after the Enforcement Directorate in Chhattisgarh named Tripathi and others as accused, many syndicate members retreated from Jharkhand. The Jharkhand government has since annulled several agreements with companies linked to the Chhattisgarh liquor lobby.

The ACB continues to investigate the broader network involved in the scam, as more revelations are expected in the coming days.

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