Vijayawada: In a major development in the alleged ₹3,500 crore liquor scam in Andhra Pradesh, the name of former Chief Minister Y S Jagan Mohan Reddy has surfaced in the preliminary chargesheet filed by the Special Investigation Team (SIT). The 305-page document, submitted to a local court on Saturday, details a web of corruption, kickbacks, and political links during the previous YSR Congress Party (YSRCP) regime. However, Jagan has not been formally listed as an accused in the case.

The SIT chargesheet, which has not yet been taken up by the court, outlines how between 2019 and 2024, a monthly sum of ₹50–60 crore was allegedly collected from distilleries and routed through intermediaries and shell companies. One witness reportedly testified that these kickbacks were ultimately funnelled to the then Chief Minister.

So far, 48 people and firms have been under the SIT's radar, though only 16 names feature in the first chargesheet. Officials have indicated that another chargesheet will be filed within the next 20 days.

Policy manipulation and kickback network

The investigation claims that the YSRCP government engineered its excise policy to gain absolute control over liquor distribution, thereby enabling officials to extract hefty bribes. The SIT alleges that commissions began at 12% of the base price and later increased to 20%. Most of the alleged kickbacks were reportedly paid in cash, gold, or bullion.

Key to the operation was Raj Kesireddy (alias Kesireddy Rajasekhar Reddy), then an advisor to the Chief Minister, who was named as one of the main conspirator. The SIT claims he manipulated excise protocols, replaced automated systems with manual processes, and planted loyalists within the Andhra Pradesh State Beverages Corporation Limited (APSBCL).

Rajasekhar Reddy is also accused of diverting between ₹250–300 crore to fund the YSRCP’s election campaign, working in tandem with former MLA Chevireddy Bhaskar Reddy. According to the chargesheet, over 30 shell companies were used to launder the illicit funds, which were invested in land, gold, and high-end assets in Dubai and parts of Africa.

Distilleries that refused to pay bribes reportedly faced deliberate delays or denials in obtaining mandatory supply approvals.

Midhun Reddy arrested as the co-conspirator

The chargesheet was submitted just an hour before the SIT arrested YSRCP MP and Lok Sabha floor leader P. V. Midhun Reddy, following a nearly seven-hour interrogation. He is accused of being a central figure in the scam, allegedly helping design the excise policy and overseeing the flow of illegal commissions from liquor companies.

The SIT stated that ₹62 crore in illicit funds have been seized to date, and 268 witnesses have been examined during the probe.

Jagan reacts: Calls case a political witch-hunt

Former Chief Minister Jagan Mohan Reddy responded strongly to the developments, condemning Midhun Reddy’s arrest and calling the entire case a politically motivated fabrication.

In a post on X, the YSRCP leader said, “The alleged liquor scam is nothing but a manufactured narrative, created purely for media theatrics and to divert attention from real issues. The entire case is built on statements extracted under pressure, threats, third-degree torture, and also through bribes and inducements.”

Jagan further alleged that the investigation involved third-degree methods, threats, and inducements to extract false statements. He accused Chief Minister N. Chandrababu Naidu of engineering the case to deflect from his own legal troubles linked to liquor policy decisions during his 2014–2019 tenure.

“The fact that @ncbn himself is on bail with respect to a case on issues pertaining to liquor policy during 2014 - 19 itself, is an irrefutable evidence as to why he is stooping so low. The fact that he wants to nullify his case for acts during 2014-19 and also justify his policy now for 2024- 29, he is finding fault with the policy formulated by the YSRCP Government,” Jagan said.

Background

The investigation initially began under the Crime Investigation Department (CID) following a complaint from an excise official. It was later transferred to a Special Investigation Team under the new TDP-led NDA government. The SIT is headed by NTR District Commissioner of Police, SV Rajashekhar Babu.