The Supreme Court has granted interim bail to N Uday Rao, accused in the Chhattisgarh liquor manpower scam case. The prosecution alleges that inflated claims for manpower were used to divert around Rs 6.90 crore as illegal commission through Rao.
The Supreme Court has granted interim bail to N Uday Rao, accused in the Chhattisgarh liquor manpower scam case, in which the prosecution alleges that inflated claims were raised for manpower deployed at liquor shops and part of the excess payments was diverted as illegal commission. A bench comprising CJI Surya Kant, Justice Joymalya Bagchi and Justice V Mohana on Friday directed Rao’s release on interim bail, subject to conditions imposed by the trial court. The Court issued notice and posted the matter for October 1.
Details of the Alleged Scam
The case relates to contracts awarded by the Chhattisgarh State Marketing Corporation Limited (CSMCL) to manpower agencies between 2019 and 2023 for deploying salesmen, supervisors and helpers at liquor shops across the State. The prosecution alleges that inflated claims were generated under overtime, bonus, four additional working days and service charges. The ACB/EOW has alleged that the mechanism resulted in excess payments of about Rs 34.06 crore to A-2-Z Infraservices Limited, with around Rs 6.90 crore allegedly routed as illegal commission through Rao to intermediaries and ultimately to principal accused Anwar Dhebar.
The allegations were recorded by the Chhattisgarh High Court while rejecting Rao’s regular bail application on August 6. The case forms part of the wider alleged CSMCL overtime payment scam. The ACB/EOW filed a chargesheet in May naming 12 accused in alleged financial irregularities of nearly Rs 182.98 crore, including Rao and businessman Anwar Dhebar.
Accused Denies Allegations
Rao, however, has denied the allegations. Before the High Court, his counsel argued that he was neither a director nor shareholder of A-2-Z Infraservices Limited and was merely serving as Vice-President (Marketing) of Chhattisgarh Distilleries Limited. His side also disputed the alleged financial trail and claimed that there was no independent material connecting him with the alleged offences.
Supreme Court Grants Relief
The Supreme Court proceedings arose from the August 6 order of the Chhattisgarh High Court, which had rejected Rao’s regular bail plea. Rao then approached the to court seeking liberty. Advocate Kaustubh Shukla along with Senior Advocates Siddharth Luthra and Siddharth Dave appeared for Rao. AAG Ravi Sharma and Advocate Apoorv Shukla appeared for the State of Chhattisgarh. The Supreme Court has directed the State to file its reply within four weeks and will hear the matter next on October 1.
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