In a 305-page chargesheet submitted to a Vijayawada court by Andhra Pradesh’s CID SIT alleges a ₹3,500 crore liquor trade fraud orchestrated during the 2019–2024 YSRCP government. The document asserts monthly kickbacks of ₹50–60 crore were extorted from distilleries. Former Chief Minister Y.S. Jagan Mohan Reddy is named as a recipient, though not formally an accused, and is believed to have received funds through aides and shell firms.
Reversing Automated Systems to Rig Supply
Investigators contend the scam involved dismantling the automated Order for Supply (OFS) system and replacing it with a manual process—allowing insiders to manipulate liquor allotments . Rajasekhar Reddy—former IT advisor—is identified as the primary conspirator who passed funds down the chain to key YSRCP figures.
Elections Fueled and Firms Enriched
The chargesheet further alleges ₹250–300 crore was diverted for YSRCP’s electoral campaigns via over 30 shell companies, with money funnelled into land, gold, Dubai, and African investments . Authorities have seized ₹62 crore in assets and examined 268 witnesses to substantiate the case.
Midhun Reddy Detained, Bail Denied
M.P. P.V. Midhun Reddy has been arrested under charges of manipulating excise policy and collecting kickbacks . His anticipatory bail plea was recently rejected by the Andhra Pradesh High Court, citing the gravity of the matter . A lookout circular has also been issued to prevent his departure from the country.
YSRCP Denounces Case as ‘Vendetta’
YSRCP leaders characterise the inquiry as politically motivated, accusing the TDP government of promoting a manufactured scandal to settle old scores. Party spokesperson Sajjala Ramakrishna Reddy asserted the case is built on “statements extracted under duress”.
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As the judicial process unfolds, investigators are poised to issue further charges. Meanwhile, Andhra Pradesh stands at the centre of one of the country’s largest alleged political–financial conspiracy cases in recent history—probing the nexus between governance, policy manipulation, and profit.