The Supreme Court recently granted interim bail to N Uday Rao, who is implicated in the ongoing Chhattisgarh liquor manpower scam. The allegations involve inflated claims made for manpower deployed at various liquor outlets, with a portion of the surplus payments reportedly diverted as illegal commissions. The case has drawn considerable attention due to the large sums of money involved and the significant number of individuals implicated.

The bench responsible for the ruling comprises Chief Justice Surya Kant, Justice Joymalya Bagchi, and Justice V Mohana, who outlined the conditions for Rao’s release. The court has scheduled the next hearing for October 1, during which further developments are expected.

The accusations pertain to contracts awarded by the Chhattisgarh State Marketing Corporation Limited (CSMCL) to various manpower agencies for hiring sales personnel, supervisors, and helpers between 2019 and 2023, as the demand for these services increased amidst growing sales for liquor in the state.

Details of Allegations

The prosecution claims that inflated claims were submitted for overtime work, bonuses, additional working days, and service charges, allegedly resulting in unauthorised payments amounting to approximately Rs 34.06 crore being disbursed to A-2-Z Infraservices Limited. Furthermore, it is alleged that around Rs 6.90 crore of these funds were funneled as illegal commissions through Rao, ultimately reaching the principal accused, Anwar Dhebar.

The allegations surrounding Rao were highlighted by the Chhattisgarh High Court when it refused to grant him regular bail on August 6, pointing to the serious nature of the claimed financial irregularities. Rao, alongside several others, is part of a broader investigation into what is described as a massive scam linked to the overtime payments mechanism used by CSMCL.

In May, the Anti-Corruption Bureau (ACB) and Economic Offences Wing (EOW) submitted a chargesheet identifying 12 individuals accused of participating in the alleged financial misconduct, which has been stated to involve nearly Rs 182.98 crore. N Uday Rao’s legal team maintains that he has denied all allegations made against him.

Rao’s Defence and Legal Proceedings

N Uday Rao’s counsel has argued in court that he is neither a director nor a shareholder in A-2-Z Infraservices Limited, clarifying that he holds the position of Vice-President (Marketing) at Chhattisgarh Distilleries Limited. His defence team contends there is a lack of independent evidence linking him directly to the alleged crimes and challenges the purported financial trail cited by the prosecution.

The Supreme Court proceedings were instigated by the High Court’s decision on August 6, which led Rao to seek bail from the apex judicial body. His legal representation includes Advocate Kaustubh Shukla, alongside Senior Advocates Siddharth Luthra and Siddharth Dave, who argued for his release.

The State of Chhattisgarh is represented by Additional Advocate General Ravi Sharma and Advocate Apoorv Shukla. The Supreme Court has mandated that the State provide its response within four weeks, as the legal challenges surrounding this case continue to unfold.

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