The Enforcement Directorate (ED) has provisionally attached assets worth ₹441.63 crore in connection with the alleged Andhra Pradesh liquor scam, uncovering a large money-laundering network linked to manipulation of the state’s liquor procurement and distribution system.
The attachment was carried out under the Prevention of Money Laundering Act (PMLA), 2002, and includes bank balances, fixed deposits, land parcels, and other immovable properties belonging to several accused and their related entities.
Investigators say the case involves a broader liquor syndicate that allegedly generated massive illicit revenues through kickbacks and manipulation of supply orders.
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Assets Linked To Liquor Syndicate Members
According to the ED, the attached properties belong to prime accused Kessireddy Rajasekhara Reddy, his family members and related entities, as well as associates including Booneti Chanakya and entities linked to former APSBCL managing director Donthireddy Vasudeva Reddy.
The money-laundering investigation stems from an FIR registered by the Andhra Pradesh Crime Investigation Department alleging criminal conspiracy, cheating, and breach of trust that caused substantial losses to the state exchequer.
The ED claims that proceeds generated from the alleged scam were diverted into real estate investments and personal assets, while a significant portion of funds was concealed through complex financial transactions.
Liquor Procurement System Allegedly Manipulated
Investigators say the alleged fraud involved manipulation of the procurement system of the Andhra Pradesh State Beverages Corporation Limited (APSBCL).
According to the ED, the previously existing automated procurement system was allegedly disabled and replaced with a manual process, giving officials discretionary powers to issue Orders for Supply (OFS) to distilleries.
This system was allegedly misused to sideline established liquor brands while granting preferential allocations to favoured brands in exchange for kickbacks.
Investigators further claim that the syndicate promoted “similar-sounding brands” with inflated base prices, enabling distilleries to generate surplus margins that were used to pay illegal commissions.
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Distilleries Forced To Pay 15–20% Kickbacks
The ED alleged that several distilleries were compelled to pay illegal kickbacks ranging from 15% to 20% of the basic price per liquor case to secure supply approvals.
Manufacturers who refused to comply reportedly faced coercive measures such as rejection of supply orders or withholding of legitimate payments.
Investigators also said communications related to the alleged kickback network were conducted through encrypted VoIP calls and messaging applications like Signal to conceal identities of key operatives.
₹1,048 Crore Money Trail And ₹3,500 Crore Estimated Loss
The ED has so far traced a money trail of ₹1,048.45 crore in kickbacks, which were allegedly paid in cash, gold, and through operational control of distilleries.
The agency claims the manipulation of procurement and distribution mechanisms caused an estimated loss of around ₹3,500 crore to the Andhra Pradesh government.
Investigators further alleged that the syndicate generated illegal revenues of roughly ₹100 crore per month through the manipulated liquor supply system.
The ED said further investigation is ongoing to trace additional proceeds of crime and identify other individuals involved in the alleged scam.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
