AP Liquor Scam, Vijayawada, July 21: The massive liquor scam that unfolded in Andhra Pradesh between 2019 and 2024 has sent shockwaves across Indian politics. While liquor-related scams have surfaced in Delhi and Telangana in the past, the scale and systematic diversion of public funds in AP has reached unprecedented levels. The CID has intensified its investigation, arresting multiple key players—most notably MP Mithun Reddy, a close aide of former CM Y.S. Jagan Mohan Reddy. More high-profile arrests are likely in the coming days, based on the comprehensive chargesheet filed by CID authorities.
According to the chargesheet, officials manipulated the policy framework of Andhra Pradesh State Beverages Corporation Limited (APSBCL), awarding liquor distribution deals to selected distilleries and shell companies. These deals enabled the diversion of over ₹3,300 crore into private and political accounts through a nexus involving bureaucrats, politicians, and fake firms.
📌 How the Scam Started:
- Following a change in government in 2019, the liquor retail model in AP was restructured to allow sales only through APSBCL.
- The existing private liquor dealers were removed from the system.
- The Order for Supply (OFS) mechanism was manually manipulated to favor newly established brands.
- Politicians, officials, and associated companies were given disproportionate orders and distribution rights.
- In return, commissions, kickbacks, and fake transactions through shell companies were used to funnel the illicit funds.
👥 Key Individuals Named in the Chargesheet:
- Kesireddy Rajasekhar Reddy – Former Government IT Advisor
- Pitta Srinivas – Retired Bureaucrat, mastermind of liquor policy manipulation
- Muppidi Avinash Reddy – Political liaison in the network
- Sajjala Sridhar Reddy – Former Government Advisor
- Booineti Chanakya – Played a key role in drafting and pushing policy changes
- Subbarao – Senior official in APSBCL responsible for implementation
- Ravindra Reddy – Handled accounting and financial routes of kickbacks
- Mithun Reddy, Chevireddy Bhaskar Reddy, Vijayasai Reddy – Named as political influencers and beneficiaries
🏢 Companies Involved:
📦 Distillery Firms:
- Indospirit Beverages Pvt. Ltd.
- Sri Sai Krishna Distilleries
- Maruthi Distilleries Pvt. Ltd.
- Himalaya Liquor Pvt. Ltd.
🧾 Shell Companies (Fake Firms):
- Trishul Logistics Pvt. Ltd.
- Advayaka Enterprises Pvt. Ltd.
- Saanvi Trading Co.
- Bluewave Technologies
- Amaravati Spirits Pvt. Ltd.
These companies were allegedly granted large-scale supply orders, bypassing regulatory protocols.
🕵🏻♂️ Step-by-Step Execution of the Scam:
- Insertion of new and politically-linked companies into APSBCL tenders.
- Bypassing automated systems with manual OFS approvals.
- Replacement of established brands with newly floated ones.
- Allotment of higher-than-required stock quantities to select firms.
- Use of shell firms to route payments and receive kickbacks.
- Hawala transactions to shift funds internationally.
- Misuse of funds for election cash distribution.
- Financial routes traced to Bangladesh, Dubai, and Singapore.
💰 Illicit Transactions and Kickbacks:
- Funds were transferred through multiple accounts held by shell companies.
- A portion of these were traced back to real estate investments, foreign travel, and political campaign funding.
- CID has identified over ₹900 crore in suspicious transfers, along with 75+ bank accounts used for laundering.
🧾 Evidence and Investigation Findings:
- 11 shell firms existed only on paper.
- 6 firms changed addresses post-exposure to evade detection.
- Email communications and digital trails confirmed high-level political involvement.
- Significant funds were routed to YCP’s political machinery, according to investigative sources.
⚖️ Charges Filed Under:
- IPC Section 409 – Criminal Breach of Trust
- IPC Section 420 – Cheating
- IPC Section 120B – Criminal Conspiracy
- Prevention of Corruption Act – Sections 13(1)(b), 13(2)
- Money Laundering and Financial Fraud Sections under the PMLA
❗ Connection to National Liquor Scams
Even though this case is AP-specific, analysts note striking similarities with the Delhi and Telangana liquor scams. In those cases, key leaders like K. Kavitha, Arvind Kejriwal, and Manish Sisodia were arrested under related charges. The same modus operandi—policy manipulation, shell companies, election funding—was reportedly mirrored in AP by then-ruling party leaders.
Political observers believe that the noose is tightening around former CM Y.S. Jagan Mohan Reddy, with irrefutable financial links connecting the illicit proceeds to the party’s funding channels.
🧿 What’s Next?
- More arrests are expected in the coming days.
- CID is preparing to question several other top-ranking officials and politicians.
- Central agencies are also keeping a close watch on the case, given the international financial transactions involved.
(Based on CID Chargesheet No. 21/2024, Cr.No. 03/2024 – Mangalagiri PS)
