Enforcement Directorate Cracks Down on Madhya Pradesh Liquor Trade Irregularities

The Enforcement Directorate conducted raids in Madhya Pradesh over a money laundering case concerning Rs 50 crore irregularities in liquor trade between 2015-18. Eleven premises were inspected under PMLA provisions, linked to forgery and treasury challan manipulation, causing significant government revenue loss.

The Enforcement Directorate on Monday intensified its probe into money laundering allegations by conducting searches across multiple locations in Madhya Pradesh. The investigation is linked to alleged irregularities worth Rs 50 crore in the liquor trade during the fiscal years 2015-16 to 2017-18.

Under the Prevention of Money Laundering Act, at least eleven premises of liquor contractors in Bhopal, Indore, and Mandsaur were raided. The case stems from a state police FIR that accuses liquor contractors of revenue loss to the government through forgery and manipulated treasury challans, as well as unlawfully obtaining a No Objection Certificate for liquor acquisitions.

The ED suspects the contractors manipulated bank deposits by filling challans with small amounts and altering them to higher values later. Such doctored challans were allegedly used to cover up revenue losses during liquor transactions between local warehouses and district excise offices.

(With inputs from agencies.)