Chhattisgarh: HC denies bail to key accused in rice milling ‘scam’

The Chhattisgarh High Court has refused bail to Roshan Chandrakar, a former treasurer of a rice mill association, who faces allegations of extortion and money laundering. Chandrakar is accused of demanding a “commission” of Rs 40 per quintal of rice from millers, deducted from state govt’s incentive payments.

As Chandrakar had prayed for bail on medical grounds, the bench of Justice Arvind Kumar Verma ordered the jail administration to provide him with medical facilities.

The main allegation against the applicant is that he was involved in running an extortion racket by way of Rs 20+20 = Rs 40 per quintal of custom milled rice out of the special incentive price of Rs 120 payable by the state govt to the custom rice millers.

Though, it has been submitted by the counsel for the applicant that there is no direct or specific evidence against the applicant to suggest that he was involved in any of the offences as alleged in the subject enforcement case information report (ECIR) or the prosecution complaint, the court said.

From the investigation of the ED, it has been revealed that the applicant was one of the key conspirator and main beneficiary of the POC extorted from the rice millers.

It has also been revealed that the rice millers were forced to pay for the same under threat that their incentive bills would not be cleared from the MARKFED. The court found strong evidence suggesting Chandrakar’s involvement in the extortion racket.

Investigations by the Enforcement Directorate (ED) revealed that he was a key conspirator and the primary beneficiary of the illicit funds. The court noted that the rice millers were coerced into paying the “commission” under the threat of their incentive payments being withheld.The court emphasised the seriousness of the offenses, considering money laundering to be a grave crime that harms the nation’s economy. It cited legal precedents that highlight the burden of proof shifting to the accused to demonstrate that the funds in question were not illegally obtained.

Chandrakar has been implicated in multiple criminal cases, including an income tax evasion case and a case filed by the Anti-Corruption Bureau. The court considered these factors along with the substantial evidence presented by the prosecution, which included documents and witness statements indicating Chandrakar’s involvement in the extortion scheme.

The court also noted that while the ED’s investigation is ongoing, the agency has already filed a charge sheet with 17 witnesses and 4,000 pages of evidence against Chandrakar.

Considering the substantial evidence, the HC concluded that Chandrakar’s release on bail at this stage would be inappropriate, as the investigation remains active.

This article has been republished from The Times of India.