ED Withdraws Petition Filed In Supreme Court Seeking Transfer Of Coal Scam Accused From Chhattisgarh

In a recent development in the Chhattisgarh Coal Levy Scam case, the Directorate of Enforcement has withdrawn its plea to transfer 2 accused out of the State of Chhattisgarh, which was pending before the Supreme Court.

On February 9, Additional Solicitor General SV Raju apprised the Bench of Justices Surya Kant and KV Viswanathan that he had instructions from the probe agency to withdraw the petition. The Court permitted the same and the ED's plea was dismissed as withdrawn.

To recapitulate, in 2022, ED had allegedly unearthed a cartel (involving senior bureaucrats, businessmen, politicians and middlemen) extorting a levy of Rs. 25 per tonne for transportation of coal in Chhattisgarh, with funds reaching Rs.500 crores within 16 months. As per the agency's case, this money was being used for election funding and bribes.

An FIR was registered by the Income Tax Department in July, 2022, to which Section 384 IPC was subsequently added (a scheduled offense under Prevention of Money Laundering Act). Following registration of an ECIR by the ED, the money laundering case ensued.

In October, 2022, raids were conducted which led to the arrest of IAS officer Sameer Vishnoi, coal businessman Sunil Agrawal, his uncle Laxmikant Tiwari, and 'kingpin' Suryakant Tiwari. Soon after, the agency also arrested Saumya Chaurasia (Deputy Secretary to former Chhattisgarh Chief Minister Bhupesh Baghel).

In October 2023, the ED approached the top court praying that Tiwari and Agrawal be moved out of Chhattisgarh, as though they were in judicial custody, a substantial amount thereof had been spent by them hospitalized. The agency alleged that hospitalization was without any genuine reason, and owing to influence exercised in the State, the two accused were being extended "special" facilities (non-maintenance of visitors register, non-deployment of guards outside rooms).

“Accused keep shuffling from one department of the hospitals to the other department indicating non-genuine reporting and are inventing disease to prolong hospital stay to spend time outside the jail,” claimed the agency in its petition.

It was further averred that out of a total of 252 days in judicial custody, Tiwari had spent 203 in a private hospital. Likewise, Agarwal remained in hospital for 68 out of 240 days.

Now, the agency has seemingly decided not to pursue the plea for transfer. Notably, the withdrawal of the ED petition comes in the backdrop of formation of a new government in Chhattisgarh State in December, 2023, replacing the Bhupesh Baghel-led Congress government which had been at loggerheads with the agency over the coal scam case.

Case Title: DIRECTORATE OF ENFORCEMENT v. STATE OF CHHATTISGARH

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