ACB court grants bail to YSRCP MP Mithun Reddy in liquor scam case

Vijayawada: YSRCP MP Mithun Reddy, who has been in Rajahmundry jail on remand for the past 71 days in connection with the liquor case, has been granted bail by the ACB court.

The court granted bail with conditions, directing him to furnish two sureties of Rs 2 lakh each and to appear before the investigating authorities twice a week.

Mithun Reddy, who was arrested by the police on July 20 and named as A4 in the case, is likely to walk out of jail tomorrow following the court’s order.

What is the case about?

The AP liquor scam conspiracy began in 2019 when one Satya Prasad approached Mithun Reddy’s residence in Tirupati and promised a conferred IAS promotion if he cooperated.

A key meeting was held on October 13, 2019, at Vijayasai Reddy’s residence in Hyderabad. After analysing the data, the members of the meeting deduced that they could earn around.

The scam would illegally provide Rs 50-60 crores per month to the accused in the form of commissions/kickbacks from various distilleries and suppliers. The members of the meeting conspired to form a syndicate, and Vasudeva Reddy proposed that Satya Prasad would handle the supplies at depots and sales at the Government Retail Outlets (GRO) to bypass the automatic order for supply (OFS).

Syndicate illegally took control of setting liquor policies

The syndicate led by Midhun Reddy effectively dictated APSBCL policies, such as pricing, discounts, and brand approvals, and misused ‘similar-sounding brands’ to inflate prices and secure illicit benefits, resulting in direct revenue loss.

Further, the syndicate also agreed to only favour those liquor brands and companies for sale of liquor in Andhra Pradesh that would pay commissions and kickbacks as demanded by them, and consequently, they intended to gain undue pecuniary advantage.

Key role of Mithun Reddy

According to investigators:

1. Mithun Reddy is a core conspirator from inception to execution, orchestrating policy changes and coordinating with co-accused to secure kickbacks from distilleries/suppliers

2. He lured the public servant (Accused number 3), Satya Prasad, with the promise of Non-SCS IAS promotion and ensured his appointment as Special Officer to implement the conspiracy.

3. He directly influenced APSBCL officials who participated in multiple planning meetings and issued instructions that led to massive financial loss to the State.

4. He routed kickbacks via entities like SPY Agro, Sanhoc Labs, and Dcart Logistics, with Rs 5 crores credited to PLR Projects—a company closely linked to the A4’s family.

5. Mithun Reddy discloses a Rs 47.74 crore liability to PLR Projects, confirming financial ties.

6. The ill-gotten money was spent during the General Elections 2024 within several constituencies in the State of Andhra Pradesh for obtaining undue political advantage.