The Supreme Court on Tuesday extended interim bail to former Chhattisgarh Excise Minister and sitting Congress MLA Kawasi Lakhma in proceedings arising out of the alleged Chhattisgarh liquor scam.
The three-judge Bench of Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice Vipul M Pancholi took into consideration the prolonged period of incarceration already undergone by the accused and the improbability of an early conclusion of trial, having regard to the scale and complexity of the prosecution.
Two cases were registered against Lakhma by the Economic Offences Wing/Anti-Corruption Bureau and the Enforcement Directorate.
Lakhma was arrested on January 15, 2025, by the Enforcement Directorate in a case registered under the Prevention of Money Laundering Act, 2002. He was subsequently arrested by the Economic Offences Wing/Anti-Corruption Bureau on April 2, 2025, in connection with offences under the Prevention of Corruption Act, 1988.
The Court noted that the prosecution proposed to examine an unusually large number of witnesses—865 in the corruption case and 117 in the money laundering proceedings—apart from the fact that the investigation against several co-accused remained pending. Such circumstances rendered the completion of trial within a reasonable timeframe unlikely, particularly in view of the volume of documentary, digital and oral evidence proposed to be led by the prosecution.
It further observed that continued incarceration without foreseeable progress in trial raised serious concerns under Article 21 of the Constitution, which guaranteed the right to personal liberty and a trial within a reasonable time.
The Bench placed reliance on settled bail jurisprudence, including the decisions in Satender Kumar Antil v. CBI, Union of India v. K.A. Najeeb and Sanjay Chandra v. CBI, reiterating that pre-trial detention could not assume a punitive character, especially where delay was systemic and not attributable solely to the accused.
The top court of the country imposed stringent conditions while granting interim bail. Lakhma was restrained from entering the State of Chhattisgarh, except for the purpose of attending court proceedings, and was directed not to seek exemption from personal appearance except on medical grounds. He was further restrained from travelling abroad and directed to deposit his passport before the Special Judge.
The Bench ordered Lakhma to disclose his place of stay and contact details to the jurisdictional police station and the ED. He was asked not to make any attempt—direct or indirect—to influence witnesses or tamper with evidence. While permitting participation in public functions, the Court restrained him from making any public statements touching upon the allegations forming the subject matter of the prosecution or the ongoing investigation.
Addressing concerns relating to his status as a sitting legislator, the Court clarified that any question regarding participation in the proceedings of the State Legislative Assembly after the filing of the charge sheet and/or the taking of cognisance would fall within the domain of the Speaker.
Senior Advocate Mukul Rohatgi, appearing for Lakhma, contended that there was no recovery of proceeds of crime from the accused and that the prosecution had failed to establish any money trail linking him to the alleged kickbacks. He submitted that the case rested primarily on confessional statements of co-accused and witness testimonies recorded under Sections 161 and 164 of the Code of Criminal Procedure, in the absence of independent corroborative material. Parity was also invoked on the ground that several co-accused had already been enlarged on bail.
Opposing the plea, Senior Advocate Mahesh Jethmalani, appearing for the State, argued that the allegations disclosed systematic corruption in the formulation and implementation of excise policy, resulting in substantial loss to the public exchequer. Additional Solicitor General SV Raju, representing the ED, submitted that proceeds of crime amounting to ₹72 crore had been traced during the course of investigation and contended that the gravity of the offence warranted continued custody.
Recording that any breach of the bail conditions would amount to misuse of the concession of liberty, the Court clarified that the interim relief would remain subject to modification or cancellation should circumstances so warrant at a later stage.
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