The alleged ‘liquor scam' in Andhra Pradesh – who got the money, and how?
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
17 minutes ago
- The Hindu
7/11 train bomb blasts case: Acquitted man demands re-investigation through SIT
Abdul Wahid Shaikh, the sole person to be acquitted by the special court in 2015 in the Mumbai train bomb blasts case, on Tuesday (July 22, 2025), demanded the formation of an SIT headed by a High Court (HC) judge to re-investigate the case. Shaikh raised this demand a day after the Bombay High Court acquitted all 12 accused, noting that the prosecution had utterly failed to prove the case. Nine years after he was arrested by the Maharashtra Anti-Terrorism Squad (ATS), the special court in 2015 cleared him of all charges related to the serial blasts case. The court had sentenced five of the 12 men to death and seven to life imprisonment. One of the death row convicts died in 2021. On Monday (July 21, 2025), the high court released all 12, noting the prosecution utterly failed to prove the case, and it was 'hard to believe the accused committed the crime' Shaikh, who works as a teacher, has been vocal about the torture inflicted by the ATS on 12 persons. He had penned a book- 'Begunah Qaidi'- while he was behind bars. The special bench of the HC also stated that the accused had been tortured to extort confessional statements. 'The government should re-investigate the case by setting up a Special Investigation Team to be headed by a High Court judge to ensure that the real perpetrators behind the train bomb blasts are arrested,' Shaikh told PTI. His other demands include an apology from the ATS for the botched investigation, ₹19 crore in compensation to the 12 men who spent 19 years behind bars despite being innocent and government jobs and houses for them. 'Though very late, these people finally got justice. The HC verdict exposed the falsehood of ATS', he said. Shaikh expressed sympathy and demanded justice for the family members of the victims killed and maimed in the synchronised blasts that ripped through Mumbai local trains at various locations on the western line on July 11, 2006, killing more than 180 persons and injuring several others. He remembered the late Assistant Commissioner of Police Vinod Bhat, one of the investigating officers in the train bomb blast case. In his book, Shaikh had claimed that Bhat was being forced to fabricate evidence and create false witnesses against the accused persons. 'Today, the soul of ACP Bhat must be happy. He ended his life in August 2006 due to pressure to frame innocent persons on the same railway track where bomb blasts had occurred,' he claimed, adding that his death was recorded as an accidental death at Dadar railway police station.
Time of India
30 minutes ago
- Time of India
Punjab government rolls out Land Pooling policy; promises farmer welfare and higher compensation
Punjab government rolls out Land Pooling policy; promises farmer welfare and higher compensation CHANDIGARH: Punjab government has rolled out a new policy for farmers' welfare that aims to prioritise partnership and transparency through its Land Pooling model. Chief Minister Bhagwant Mann-led Aam Aadmi Party (AAP) government has introduced a land pooling model under which farmers receive annual compensation of Rs 1 lakh, five times more than the Rs 20,000 previously given. In addition to the revised amount, the policy includes a 10% annual increment in the rental sum. Farmers joining the scheme also receive an upfront payment of Rs 50,000. Upon enrollment, farmers receive a Rs 50,000 advance cheque for the first year and a Letter of Intent (LOI) within just 21 days. Until development begins on the pooled land, farmers retain full possession and can continue agricultural activities. The government will continue to deposit the ₹1 lakh annually into their accounts during this period. Officials claim the new model eliminates the need for middlemen and reduces opportunities for corruption, offering what is described as a direct and transparent approach. The land pooling model also alters the traditional equation between farmers and urban developers. Rather than being sidelined as land providers, farmers are being positioned as stakeholders in the development process. Initial response to the scheme has seen participation from more than 50 farmers in Mohali. In Patiala, over 150 acres were pooled voluntarily in the first week. Similar interest has reportedly been seen in Amritsar, Moga, Sangrur, Jalandhar, Nawanshahr, Hoshiarpur, Tarn Taran, Fazilka, Kapurthala, and Bathinda. AAP government's policy is built on consent, without forcible acquisition. Government officials say it aims to provide fair and consistent compensation while involving farmers in the development process.
United News of India
44 minutes ago
- United News of India
SC declines to stay QR code rule for Kanwar Yatra eateries
New Delhi, July 22 (UNI) The Supreme Court today refused to examine the legality of directives issued by Uttar Pradesh and Uttarakhand authorities requiring eateries along the Kanwar Yatra route to display QR codes revealing owners' details, stating that the matter had become infructuous with the Yatra ending. A bench of Justice MM Sundresh and Justice NK Singh disposed of the interlocutory applications challenging the mandates, while clarifying that eateries must continue to display their licences and registration certificates as per statutory requirements. 'We are told today is the last day of the Yatra. In any case, it is likely to come to an end in the near future. Therefore, at this stage, we would only pass an order that hotel owners comply with the mandate of displaying licences and registration certificates,' the bench ordered, adding that it was not entering into other contentious issues raised. During the hearing, Justice Sundresh emphasised the importance of consumer choice, observing, 'People have different food preferences. A vegetarian person may prefer to go only to a place serving exclusively vegetarian food, especially during a religious pilgrimage. If a hotel was earlier serving non-veg and switches to veg only during the Yatra for business reasons, the consumer should know. The choice is of the consumer… Customer is the king.' Senior advocate Dr Abhishek Manu Singhvi, appearing for the petitioners, argued that the directives mandating QR codes and owner names promoted religious profiling in violation of constitutional rights. 'How does the surname of the owner ensure good service? The only intent is to cause religious profiling. This is the most divisive initiative, to ostracise people as if they are untouchables,' Singhvi submitted, citing media reports of attacks on shops due to such identity disclosures. Senior advocate Huzefa Ahmadi also objected, illustrating that under the directive, even a neutral business name like 'Bombay Mart' would require adding the owner's personal name, thereby exposing religious identity. 'This promotes untouchability through the back door,' he warned. Justice Sundresh, however, maintained that while personally agnostic, he recognised that food choices matter deeply to many pilgrims. He added, quoting Marx in passing, 'Religion is the opium of the masses,' and clarified that the bench was seeking a balance between consumers' rights to know and avoiding discrimination. Senior advocate Mukul Rohatgi, for Uttar Pradesh, defended the directives as compliance with FSSAI regulations, arguing that last year's Supreme Court order was only ad-interim and that misrepresentation by eateries regarding vegetarian food had previously triggered law-and-order issues. 'As per regulations under the Act, they require photo identity. Why are you scared of showing your name?' he asked. The bench refused to entertain further arguments, noting that the petitions had become infructuous with the Yatra's conclusion, and advised petitioners to approach the High Court if they sought further clarification. 'We have said that we are not going into it. If you want to challenge it, go before the High Court,' Justice Sundresh said. UNI SNG PRS
