Supreme Court Raises Concerns Over “Disturbing Features” in ED’s Arrest of Ex-IAS Officer in Chhattisgarh Liquor Scam

On Friday, December 6, the Supreme Court raised concerns over the “disturbing features” surrounding the arrest of former IAS officer Anil Tuteja by the Enforcement Directorate (ED) in connection with the Chhattisgarh liquor scam. A bench comprising Justice Abhay S. Oka and Justice Augustine George Masih noted that Tuteja was taken from the ACB office, interrogated overnight, and only formally arrested at 4 a.m. the following morning.

“We must record a very disturbing feature of the case. On April 20, 2024, around 4:30 p.m., the petitioner was sitting in the ACB office in Raipur. Initially, he was served a summons directing him to appear before the ED at 12:00 p.m. Another summons was issued while he was at the ACB office, calling him to appear before the ED at 5:30 p.m. He was then taken to the ED office in a van, questioned throughout the night, and formally arrested at 4:00 a.m.,” the Court highlighted.

The Supreme Court had previously criticized the ED in October for its handling of Tuteja’s summons and arrest. Justice Oka had questioned the urgency with which the ED issued multiple summonses and conducted an overnight interrogation, calling such practices “unpardonable.”

Today, Additional Solicitor General (ASG) SV Raju informed the Court that corrective measures have been implemented to prevent such incidents in the future. “The facts are glaring. However, the learned ASG submits that remedial measures have been taken by the ED to ensure that such incidents are avoided. A press release to that effect was issued on 29.10.2024,” the Court recorded.

The press release referenced a Bombay High Court judgment dated April 15, 2024, in Ram Kotumal Issrani v. Directorate of Enforcement, where the court directed the Enforcement Directorate (ED) to establish internal guidelines for the timing of statements recorded under Section 50 of the Prevention of Money Laundering Act (PMLA). These guidelines emphasize that statements should generally be recorded during office hours and discourage late-night interrogations, except in exceptional circumstances.

The Court also permitted Anil Tuteja to withdraw his plea challenging the arrest, while granting him the liberty to apply for bail.

Senior Advocate Abhishek Manu Singhvi, representing Tuteja, argued that the Supreme Court had previously quashed the prosecution complaint filed by the ED in the first Enforcement Case Information Report (ECIR) on April 8, 2024. Singhvi contended that three days later, the ED registered a new ECIR based on the same facts and evidence. He questioned, “How could they have new information in such a short time?”

Justice Oka raised concerns about whether the ED could use the same material from the first ECIR— which had been quashed—to justify the registration of a second case.

Additional Solicitor General (ASG) SV Raju responded by stating that, during the investigation into the second ECIR, all relevant documents, including statements recorded under Section 50 of the PMLA, were obtained from the investigating officer of the first ECIR. He argued that the material collected in the first investigation remained on record and could be used in the new proceedings.

Justice Oka noted that the quashing of the first ECIR was based on the absence of a predicate offence. However, he clarified that the court was not addressing the legality of the investigation itself, but only whether the arrest was illegal.

After hearing the arguments, Singhvi sought permission to withdraw the petition, expressing confidence in securing bail. The bench granted the withdrawal with the liberty to apply for bail and directed the concerned court to prioritize the bail application.

Background

Anil Tuteja is one of the accused in the Chhattisgarh Liquor Policy scam, which allegedly involved the manipulation of liquor distribution and the collection of illegal commissions from distilleries. He was granted anticipatory bail in 2020. Following this, the Enforcement Directorate (ED) initiated an investigation into related money laundering offenses under the Prevention of Money Laundering Act (PMLA), 2002. On August 20, 2024, the Chhattisgarh High Court dismissed Tuteja’s plea to quash his arrest.

Case No. – SLP(Crl) No. 12124/2024
Case Title – Anil Tuteja v. Union of India