UPSC Prelims Practice Questions — Liquor scam case: SC to hear question of law in plea by Baghel

Q1. In the context of the Enforcement Directorate's case against Chaitanya Baghel in the Chhattisgarh liquor scam, the term 'proceeds of crime' under the Prevention of Money Laundering Act, 2002 most precisely refers to which one of the following?

  • A. Any property derived or obtained, directly or indirectly, by a person as a result of criminal activity relating to a scheduled offence
  • B. Any cash recovered from an accused person during a search, irrespective of its origin
  • C. The total loss caused to the State exchequer as assessed by the trial court at the stage of conviction
  • D. Movable property attached by a civil court pending recovery of a private debt

Q2. Which central agency arrested Chaitanya Baghel in July 2025 and is conducting the money-laundering investigation in the Chhattisgarh liquor scam?

  • A. Enforcement Directorate (ED)
  • B. Central Bureau of Investigation (CBI)
  • C. National Investigation Agency (NIA)
  • D. Serious Fraud Investigation Office (SFIO)

Q3. Under which one of the following statutes was Chaitanya Baghel arrested by the ED in the Chhattisgarh liquor scam case?

  • A. Prevention of Money Laundering Act, 2002
  • B. Prevention of Corruption Act, 1988
  • C. Prohibition of Benami Property Transactions Act, 1988
  • D. Bharatiya Nagarik Suraksha Sanhita, 2023

Q4. With reference to the Enforcement Directorate's money-laundering case in the Chhattisgarh liquor scam, consider the following statements: 1. Chaitanya Baghel was arrested by the ED in July 2025 under the Prevention of Money Laundering Act, 2002. 2. The alleged scam is stated to pertain to the period 2019–2022. 3. The ED has pegged the total proceeds of crime in the scam at around ₹2,161 crore. 4. Chaitanya Baghel was the Chief Minister of Chhattisgarh during the alleged scam period. Which of the above is/are NOT correct?

  1. Chaitanya Baghel was arrested by the ED in July 2025 under the Prevention of Money Laundering Act, 2002.
  2. The alleged scam is stated to pertain to the period 2019–2022.
  3. The ED has pegged the total proceeds of crime in the scam at around ₹2,161 crore.
  4. Chaitanya Baghel was the Chief Minister of Chhattisgarh during the alleged scam period.
  • A. 1 and 3
  • B. 2 and 4
  • C. 4 only
  • D. 3 and 4

Q5. Comparing the ED's case against Chaitanya Baghel at the stage of his arrest with the stage of its final prosecution complaint, consider the following statements: 1. At the time of his July 2025 arrest, the ED alleged he received about ₹200–250 crore as his share of the proceeds of crime. 2. The ED's final prosecution complaint filed in December 2025 named 59 additional accused, taking the total to 81. 3. The ED has estimated the total proceeds of crime in the entire scam at only about ₹200 crore. Which of the statements given above is/are correct?

  1. At the time of his July 2025 arrest, the ED alleged he received about ₹200–250 crore as his share of the proceeds of crime.
  2. The ED's final prosecution complaint filed in December 2025 named 59 additional accused, taking the total to 81.
  3. The ED has estimated the total proceeds of crime in the entire scam at only about ₹200 crore.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3