Ministers, Police involved in Gutkha scam: CBI in High Court

The government announced a ban on the production and/or sale of gutkha and paan masala in Tamil Nadu in the year 2013.

However, the ban has not been implemented effectively as sale of gutkha and other drugs is still rampant in Tamil Nadu.

Following a lead about tax evasion, the Income Tax department conducted a raid in the godowns, factories and house of Madhavrao, a gutkha manufacturer, in July 2016. A lot of documents were seized in the surprise raid.

Among the documents was a secret diary, which contained information about the production of paan masala and gutkha violating the ban. The diary also had information about people involved in a chronological order.

When the documents were scrutinized, it came to light that various ministers, police officers and city corporation officials repeatedly involved in bribery with the gutkha manufacturers. The amount of money bribed to the ministers and the police amounted to Rs.40 crores. The Income Tax department insisted that the government should take necessary action against the ministers and the police officials who were involved in bribery.

However, no action was taken. Following this, DMK filed a petition in the Chennai High Court against the gutkha scam. The Chennai ordered a CBI following the petition.

The CBI investigated the case. CBI, acting on the information from the Income Tax department and the Tamil Nadu police, filed fresh cases under various sections.  Raids were conducted in various places once again.

As a result of the raids, 25 people were interrogated whose answers were videotaped.

Meanwhile one of the prisoners in the gutkha scam filed a petition in the Chennai Highcourt asking for his bail. Justice Ilanthiraiyan, who was the judge, ordered the CBI to answer the plea. The CBI filed a counter petition following the order.

The petition said:

"The CBI conducted raids in 31 places following the Gutkha scam. According to section 165 of the Criminal Procedures Act, raids were conducted in 11 more places. As a result, a lot of documents were found."

"Following this, about 25 people were investigated. It came to light that, various Tamil Nadu ministers, police officers holding respectable posts were involved in this scam."

"There is evidence of bribery for the illegal distribution and sale of gutkha. We also have the confession of various convicts which cement the suspicion of the officials."

"Food safety department, Customs and commercial tax department authorities are also involved in this scam. Government officials have been involved in the illegal production, sale and distribution of the banned gutkha. These officials also destroyed various documents. Investigation is progress in order to confirm the accusation."

Thus, the CBI has tightened its noose on the police officials.