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Money Laundering

Liquor Mafia Money Allegation

Key Allegations on Liquor Mafia Money



  1. ₹ 10,000 Crore from Liquor Mafia

    • The Bihar BJP chief, Samrat Choudhary, has accused Nitish Kumar and his party (JD(U)) of receiving ₹ 10,000 crore from the liquor mafia since prohibition was imposed in 2016.

    • According to Choudhary, the mafia set up a “parallel economy” by supplying liquor via home delivery, and the proceeds were allegedly flowing to JD(U).

    • The JD(U) has denied these allegations, calling them "baseless and fictitious," and challenged the BJP to present proof.



  2. Parallel Economy Worth ₹ 30,000 Crore

    • Tejashwi Yadav (RJD) has claimed that corruption under the guise of prohibition has created a "parallel economy" in Bihar worth ₹ 30,000 crore, implicating Nitish’s government, police, and mafia.

    • He argues that despite the ban, a huge black market operates, and the "liquor mafia" continues to make massive money.

    • In one of his attacks, Yadav said that confiscated liquor is allegedly sold back into the market with help from JD(U) leaders, police, and the mafia.



  3. Collusion in Excise / Police

    • A former IPS officer, Rakesh Kumar Sinha, wrote a letter alleging that excise officials, police, and local politicians (public representatives) were complicit in the illicit liquor trade.

    • In his letter, he urged the investigation of movable and immovable properties amassed by excise department officials, suggesting they profited massively.

    • Some excise officials have indeed been suspended for alleged collusion with the liquor mafia.



  4. Political / Leadership Ties

    • Lalu Prasad Yadav once accused RCP Singh (a close associate of Nitish) of being a “liquor king.” According to Lalu, RCP Singh receives “commission” from the mafia:He gets commission from them. The money from illicit liquor trade directly reaches his house.

    • Lalu also alleged that RCP extracts money from district-level officials ("every DM and SP") monthly.



  5. Deaths & Hooch Tragedies

    • After a spurious liquor ("hooch") tragedy in Bihar (with dozens of deaths), Tejashwi Yadav renewed his accusations, calling the liquor ban "the biggest corruption" of Nitish’s rule.

    • These deaths are cited as symptomatic of a broken system where illegal liquor is thriving under prohibition.



04 May, 2023

Sources