The alleged ‘liquor scam' in Andhra Pradesh – who got the money, and how?

Indian Express

16-05-2025

The Andhra Pradesh government has accused its predecessor YSR Congress regime of corruption to the tune of more than Rs 3,000 crore in a liquor policy that it introduced in the state in 2019.
Between Rs 3,200 crore and Rs 3,500 crore were received as kickbacks from liquor manufacturers in the alleged 'scam', according to the remand report and an affidavit submitted to the Supreme Court by an Andhra Pradesh Special Investigation Team (SIT) on April 27.
The 'kingpin' of the scam, the SIT has alleged, was Kasireddy Rajasekhar Reddy alias Raj Kasireddy, who was IT Advisor to former Chief Minister and YSR Congress Party leader Y S Jagan Mohan Reddy.
Other big names linked to the investigation include the former Rajya Sabha MP Vijaya Sai Reddy, a founding member of the YSRCP who announced his retirement from active politics last year, and P V Midhun Reddy, the three-time MP from Rajampet, who is the YSRCP floor leader in Lok Sabha.
The YSRCP has accused the Telugu Desam Party government of a witch hunt, and said that the SIT has found no material evidence against any accused.
What was the alleged scam?
Before the Andhra Pradesh Assembly election of 2019, the YSRCP had promised a ban on liquor in phases, and to discourage the consumption of alcohol by increasing its price.
After coming to power, the YSRCP government formulated a new liquor policy that came into effect at the end of 2019, with the goal of ultimately facilitating a ban on liquor.
Instead, the liquor policy encouraged a money-laundering racket that flourished until 2024, according to the SIT, which was formed by the TDP government of N Chandrababu Naidu that unseated the YSRCP in June last year.
The policy allegedly led to the suppression of premium brands of liquor and the proliferation of certain new local brands, which were given undue market share and a competitive advantage over the competition.
Who allegedly got the money?
The SIT has alleged that the proprietors of the new brands gave Rs 65 crore to Rs 70 crore every month to Raj Kasireddy in return for getting an undue share in the market. The money was allegedly passed on to the YSRCP leadership, the remand report says.
'The money basically went into funding the party (YSRCP),' Lavu Sri Krishna Devarayulu, the MP from Narasaropet and the floor leader of the TDP in Lok Sabha, told The Indian Express. Devarayulu was the YSRCP MP from Narasaropet from 2019 and 2024, when the scam allegedly unfolded.
According to the SIT's investigation, about 20 people including senior YSRCP leaders were involved in the alleged money laundering. Raj Kasireddy was arrested in April. Leaders such as Midhun Reddy have obtained anticipatory bail from the Supreme Court.
What does the YSRCP have to say?
The YSRCP has rejected the investigation as 'fabricated' and 'lacking credible evidence'. The alleged scam is 'entirely fictitious, relying solely on coerced statements obtained through police harassment', the party has said.
The YSRCP has alleged that former Andhra Pradesh State Beverages Corporation Limited officials such as Vasudeva Reddy, and lower-level employees including Satya Prasad and Anusha, were threatened into giving false testimonies.
'The SIT has failed to produce any financial trail, forensic proof, or documentary evidence to substantiate its allegations,' the YSRCP said in an official statement to The Indian Express.