A compact trolley-mounted pulsed transverse electric atmospheric pressure (TEA) carbon dioxide laser-based differential absorption lidar (DIAL) system capable of stand-off detection of chemical clouds in aerosol and vapour form upto about 200 m range in the atmosphere has been developed and assembled at Laser Science and Technology Centre (LASTEC), Delhi. The system was tested successfully with diethyl ether (DEE) (a toxic industrial chemical (TIC)) and differential absorption signals at $\lambda_{\text{on}}$ (strong absorption, 9R16) and $\lambda_{\text{off}}$ (weak absorption, 10R26) wavelengths were recorded for stand-off distances upto ∼100 m (open air ground path). This paper discusses the technical details of trolley-mounted CO₂ DIAL system and the data generated during the test and evaluation of this sensor using DEE aerosols.