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Allahabad High Court Grants Bail to Former Excise Commissioner in Rs. 2161 Crore Liquor Scam

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Allahabad High Court Grants Bail to Former Excise Commissioner in Rs. 2161 Crore Liquor Scam

The court emphasizes that bail is a rule and jail is an exception, allowing bail despite multiple FIRs and criminal antecedents.


In a significant ruling, the Allahabad High Court has granted bail to Niranjan Das, a former Excise Commissioner of Chhattisgarh, implicated in a massive Rs. 2161 crore liquor scam. The decision was handed down by Justice Vikram D. Chauhan in response to the Criminal Misc. Bail Application No. 14698 of 2026.


The case traces back to an FIR lodged on January 17, 2024, under various sections of the Indian Penal Code and the Prevention of Corruption Act, alleging that Das played a pivotal role in orchestrating a policy that facilitated the scam. The scam involved manufacturing holograms in Uttar Pradesh used in Chhattisgarh's illicit liquor distribution.


Despite the gravity of the charges, the High Court upheld the principle that "bail is a rule and jail is an exception," a doctrine reinforced by the Supreme Court in previous judgments. The court found no exceptional circumstances to deny bail, considering that the investigation was complete, a chargesheet filed, and the primary offence in Chhattisgarh already addressed with a bail order from the Supreme Court.


Justice Chauhan considered various precedents and statutory provisions, including Article 21 of the Constitution of India, which ensures the right to life and personal liberty, and Section 439 of the Criminal Procedure Code, 1973, which governs bail applications.


The court imposed stringent conditions on Das to ensure his presence during the trial and safeguard the integrity of the judicial process. These conditions include prohibiting him from leaving the country without permission, requiring him to provide a personal bond and sureties, and mandating disclosure of any change in residential address.


The ruling underscores the judicial system's balance between safeguarding individual rights and addressing alleged economic offences, especially when multiple FIRs and criminal antecedents are involved. It also highlights the court's discretion in granting bail, focusing on the absence of risks such as evidence tampering or witness intimidation.


Niranjan Das, who has been in custody since December 19, 2025, expressed relief at the court's decision, pledging to cooperate with the ongoing trial and adhere to all conditions set forth by the court.


Bottom Line:

Bail - Grant of bail in cases involving economic offences and multiple FIRs - Bail is a rule and jail is an exception, and prior criminal antecedents alone cannot be the sole ground for denial of bail.


Statutory provision(s):

- Criminal Procedure Code, 1973, Section 439

- Constitution of India, 1950, Article 21

- Indian Penal Code, 1860, Sections 419, 420, 467, 468, 471, 484, 120-B

- Prevention of Corruption Act, 1988, Sections 7 & 13


Niranjan Das v. State of U.P., (Allahabad) : Law Finder Doc id # 2941283

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