India
oi-Ruchika Pareek
A
305-page
chargesheet
filed
by
the
Special
Investigation
Team
(SIT)
of
Andhra
Pradesh
Police
in
the
₹3,500
crore
liquor
policy
scam
has
named
former
Chief
Minister
YS
Jagan
Mohan
Reddy
as
the
ultimate
recipient
of
monthly
kickbacks
during
his
tenure
between
2019
and
2024.
However,
he
has
not
been
named
as
an
accused
in
the
case
yet.
According
to
the
chargesheet,
from
2019
to
2024,
an
estimated
₹50
to
₹60
crore
was
collected
every
month
from
distilleries.
These
funds
were
allegedly
funneled
through
a
network
involving
close
aides
and
shell
companies,
eventually
reaching
Jagan
Mohan
Reddy.
Witness
testimonies
cited
in
the
chargesheet
claim
that
the
collected
sums
were
first
passed
to
Kesireddy
Rajasekhar
Reddy
(A-1),
then
to
P
V
Midhun
Reddy
(A-4),
Vijay
Sai
Reddy
(A-5),
and
Balaji
(A-33),
who
in
turn
routed
them
to
Jagan.
The
case
gained
further
momentum
with
the
recent
arrest
of
Rajampet
MP
and
YSRCP
Lok
Sabha
floor
leader
P
V
Midhun
Reddy.
The
SIT
alleges
he
played
a
key
role
in
executing
the
scam
and
facilitated
its
use
to
fund
the
YSRCP’s
2024
Assembly
election
campaign.
Described
as
a
“core
conspirator
from
inception
to
execution,” Midhun
Reddy
is
accused
of
helping
design
the
excise
policy
and
coordinating
the
collection
of
kickbacks.
According
to
investigators,
the
liquor
policy
was
deliberately
skewed
to
extort
distilleries
and
redirect
funds
into
party
coffers.
Distilleries
were
allegedly
forced
to
pay
bribes
of
up
to
20%
of
the
base
price
or
face
being
cut
out
of
supply
chains.
The
system
was
manipulated
by
eliminating
the
automated
Order
for
Supply
(OFS)
mechanism
and
replacing
it
with
a
manual
process
to
evade
oversight.
The
majority
of
kickbacks
were
received
in
gold,
cash,
or
bullion,
with
portions
allegedly
used
to
purchase
luxury
assets
abroad,
including
properties
in
Dubai
and
Africa.
Kasireddy
Rajasekhar
Reddy,
a
former
IT
advisor
to
Jagan
and
identified
by
the
SIT
as
the
“mastermind,” is
accused
of
orchestrating
the
scheme
through
over
30
firms.
He
also
allegedly
planted
loyalists
within
the
Andhra
Pradesh
State
Beverages
Corporation
Limited
(APSBCL)
to
manage
illicit
transactions
and
laundered
money.
The
chargesheet
mentions
that
the
scam
had
its
roots
in
a
2019
meeting
held
at
Hotel
Park
Hyatt,
Hyderabad,
where
distillery
owners
were
summoned
by
YSRCP
leaders
and
warned
to
comply
with
the
scheme
or
face
business
loss.
The
Enforcement
Directorate
(ED)
has
initiated
a
separate
investigation
under
the
Prevention
of
Money
Laundering
Act
(PMLA),
with
an
ECIR
registered
in
May.
In
response
to
Midhun
Reddy’s
arrest,
the
YSRCP
alleged
political
vendetta
by
Chief
Minister
N
Chandrababu
Naidu’s
government,
calling
it
a
“misuse
of
power
to
target
opposition
leaders.” Some
party
insiders
claimed
that
Midhun’s
increasing
influence
following
Vijayasai
Reddy’s
sidelining
made
him
a
threat,
especially
since
he
had
become
the
party’s
main
face
in
Delhi.
However,
leaders
from
the
ruling
TDP
insist
that
the
arrest
is
based
on
solid
evidence.
“The
funds
acquired
through
illegal
channels
were
used
to
finance
YSRCP’s
2024
election
campaign,” a
senior
TDP
leader
stated.
What
is
the
Alleged
Scam?
The
₹3,500
crore
scam
pertains
to
the
liquor
policy
introduced
by
the
YSRCP
government
in
2019,
which
was
publicly
presented
as
part
of
a
phased
prohibition
plan.
Instead,
the
SIT
alleges
the
policy
was
exploited
to
benefit
select
distilleries
and
shell
liquor
brands
in
return
for
substantial
monthly
bribes.
Popular
brands
were
reportedly
replaced
with
lesser-known
ones
under
a
controlled
manual
supply
system.
Liquor
manufacturers
were
coerced
into
paying
bribes
ranging
from
12%
to
20%
of
the
base
price,
with
threats
of
losing
their
OFS
allocations
if
they
failed
to
comply.
The
SIT
says
the
entire
scheme
was
coordinated
to
systematically
extract
funds
and
launder
them
through
dummy
companies,
real
estate,
and
offshore
assets.
The
investigation
continues
as
both
the
SIT
and
ED
deepen
their
probe
into
what
appears
to
be
one
of
the
largest
political
kickback
scandals
in
Andhra
Pradesh’s
recent
history.
