AP liquor scam: SIT searches YSRCP MP Mithun Reddy's homes, offices in Yusufguda, Kondapur

Hyderabad: Andhra Pradesh SIT officials carried out searches at the residences of YSRCP MP Mithun Reddy in connection with the liquor scam case that allegedly occurred during the previous YSRCP regime.

Searches in Yusufguda and Kondapur

The raids were conducted at his houses in Prashanth Nagar and Gayathri Hills, Yusufguda, in Hyderabad, as well as at his residence in Bengaluru. The SIT team also searched his office in Kondapur as part of the ongoing investigation.

It may be recalled that Midhun Reddy was in Rajahmundry jail on remand for 71 days in connection with the Andhra Pradesh Liquor Scam case until he was granted bail recently by the ACB court on September 29 and released.

He was arrested by the police on July 20 and named as Accused Number 4 in the case. 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.

What is the AP liquor scam?

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.

According to investigators, Midhun Reddy is a core conspirator from inception to execution, orchestrating policy changes and coordinating with co-accused to secure kickbacks from distilleries.

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.

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 Election 2024 within several constituencies in the State of Andhra Pradesh for obtaining undue political advantage.