How Ponty Chadha controlled his Rs 12,000-cr liquor empire

LUCKNOW: Ponty Chadha controlled his Rs 12,000-crore liquor empire in Uttar Pradesh through his 1,500-strong private 'task force' that ran parallel to the government's excise department and maintained its own network of intelligence gathering.

The main job of the 'task force' was to protect the business interests of the group, plug holes and crack down on liquor smuggling, said sources. The force, spread across the state with headquarters in Noida, was provided with the entire paraphernalia for conducting raids and had its own intelligence network. The team members were given cash rewards for seizing liquor smuggled into UP.

And just like any government office, the department also had a well-defined hierarchy, a policy of transfer and posting, as well as punishment for non-performance. "We too have come to know about this team but we are not sure if it is still operating," said a top state excise department official.

Sources privy to the functioning of the Chadha Group's 'excise department' said that at the district level, the force comprised a district in-charge (DIC) who was answerable for fall in sales or returns from any district. The officer was provided with an SUV and gunners from private security agencies and was responsible for the output of his team of 16 subordinates, including a CIC (city in-charge), RIC (raid in-charge), GIC (group in-charge), OIC (office in-charge) and TIC (tehsil in-charge for smaller towns). This hierarchy was followed in all the 75 districts of the state.

"The team members would conduct surprise inspections at liquor stores and distribution centres to check if only the group's products were being supplied. Team members would pose as customers at outlets to verify the price being charged at outlets," said a member of the team in Moradabad, where it operated from a rented house in Budh Vihar of Awas Vikas Colony.

The team had a well-oiled intelligence network that maintained its focus on illicit liquor being smuggled into the state and sold to outlets in border districts, said sources. The team was given a cash reward of Rs 50,000 for each truckload of smuggled liquor seized. The force was responsible for gathering intelligence, contacting the local excise and police department officials and escorting them to the seizure. While Chadha's men would get cash rewards, the excise and police department would get accolades for 'good work' without much sweat.

Sources said often these members of the task force would strike a deal with moles in the local excise department who would inform them about movement of smuggled liquor.

"The force initially had a strength of two to five persons per district which was augmented as the business expanded. There was a time when the salary for this department was secured by selling the Indian Made Foreign Liquor ( IMFL) at Rs 5-15 higher than the MRP," said a member of the team.

He and other members of the force are now staring into uncertainty after Ponty's death, as their appointments were never formalized nor were they given any appointment letter.