The Anti-Corruption Bureau (ACB) in Ranchi has arrested former Jharkhand Excise Secretary and IAS officer Vinay Choubey, along with Excise Department official Gajendra Singh, in connection with a liquor scam allegedly linked to a Chhattisgarh-based liquor syndicate.
Choubey was detained from his residence on Tuesday morning, while Singh was summoned for further questioning at the ACB office. Both were interrogated over their suspected involvement with the syndicate operating out of Chhattisgarh.
Following their arrest, the two were produced before Judge Yogesh Kumar, who remanded them to judicial custody.
According to the ACB, Choubey allegedly collaborated with members of the Chhattisgarh liquor syndicate to facilitate the introduction of a new excise policy in Jharkhand, which reportedly caused significant revenue losses to the state.
The investigation began with a preliminary inquiry after FIR No. 36/2024 was registered by the Chhattisgarh Economic Offences Wing (EOW). Choubey and Singh had previously been questioned multiple times in connection with the case.
Subsequent to the initial findings and with requisite approval, the ACB registered a formal case. In March 2025, after completing its investigation, the Chhattisgarh EOW requested the Jharkhand government to authorise prosecution of the two officials.
The Jharkhand government then sought legal opinion from senior Supreme Court advocate S. Nagamuthu and submitted findings from its own inquiry.
Speculation began circulating in late 2021 among liquor traders that Jharkhand would adopt a new excise policy for the 2022–23 fiscal year, allegedly under the influence of players from the Chhattisgarh liquor industry.
Following this, the Excise Department of Jharkhand appointed Chhattisgarh State Marketing Limited (CSML) as a consultant to improve liquor-related revenue.
A consultancy fee of ₹1.25 crore was paid to Arun Pati Tripathi for formulating policy recommendations. The draft policy was forwarded to Revenue Council member Amrendra Prasad Singh for approval.
Singh raised concerns regarding CSML’s performance in its own state and noted that Jharkhand’s liquor revenue was already on an upward trajectory.
Although some of his concerns were acknowledged, the new excise policy was eventually implemented, effectively handing major control of the liquor trade in Jharkhand to entities allegedly connected with the Chhattisgarh syndicate.
The tender terms allowed companies such as Ishita and Omsai to gain control over wholesale distribution. Prism, another firm linked to the syndicate, secured the contract for supplying security holograms on liquor bottles. Even the staffing of government-run liquor outlets was outsourced to firms based in Chhattisgarh.
The new policy adversely affected local country liquor producers. Earlier, country liquor was sold in plastic bottles, but under the revised policy—allegedly pushed by the syndicate—only glass bottles were permitted, forcing many local bottling units to shut down.
This shift enabled the syndicate to distribute stock sourced from Chhattisgarh in Jharkhand. Attempts to collaborate with local enterprises largely failed, and those who resisted were reportedly pressured by the Excise Department.
After the Enforcement Directorate (ED) initiated an investigation into the Chhattisgarh liquor scam and named Arun Pati Tripathi as an accused, many syndicate-linked firms gradually withdrew from Jharkhand.
In response, the Jharkhand government terminated contracts and agreements with several companies affiliated with the syndicate.
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