AP liquor scam: SIT arrests Mumbai-based Anil Chokhara who used shell firms to move Rs 77.55 crore

Amaravati: In a major breakthrough in the ongoing probe into the Rs 3,500-crore Andhra Pradesh liquor scam, the Special Investigation Team (SIT) has arrested Mumbai-based bullion operator Anil Chokhara (also known as Anil Chokada), the Accused No. 49 in the case.

The SIT alleges that Chokhara engineered an elaborate shell-company network to funnel Rs 77.55 crore in kickbacks from major distilleries during the previous Jagan Mohan Reddy-run YSRCP government in Andhra Pradesh.

Funds diverted to bogus firms

According to investigation records, distilleries including Adan Distilleries Pvt. Ltd. and Leela Distilleries Pvt. Ltd, entities linked to key accused A1 and A7, diverted funds to multiple bogus firms to convert black money into white, later used to pay bribes within the liquor syndicate.

His arrest has helped investigators establish a direct financial trail connecting the diverted funds to prime accused Kesireddy Rajasekhar Reddy (A1) and Muppidi Avinash Reddy (A7).

How was the money laundered?

Investigators say distilleries reportedly controlled by A1 and A7—Adan Distilleries Pvt. Ltd., Leela Distilleries Pvt. Ltd. and SPY Agro Industries Ltd.—diverted large sums using fraudulent mechanisms.

As much as Rs 77.55 crore was diverted to four Mumbai-based shell firms: Olwick Multiventures, Kripati Enterprises, Nysna Multiventures and Vishal Enterprises.

Investigators also found that SPY Agro Industries was part of the distillery network whose funds were channelled through the same set of Mumbai-based shell companies operated by Chokhara, following an identical laundering pattern across the scam.

Investigations further show that the money was layered across 32 additional entities, obscuring the audit trail.

In total, 35 shell companies—created through impersonation, dummy directors, falsified documentation, and manipulated bullion-trade transactions—were found under Chokhara’s control.

Who is Chokhara?

Chokhara, 44, originally from Rajasthan and currently residing in Navi Mumbai, has a history of financial crimes, including a Rs 304-crore bank fraud case and multiple Mumbai EOW cases relating to GST and other economic offences.

He was arrested on November 13 at Sanpada Police Station, Navi Mumbai, and was produced before a local court in Thane, which issued a transit warrant directing that he be taken before the ACB court in Vijayawada by November 15.

He was later remanded to police custody.

The SIT is expected to question him further to uncover the complete chain of beneficiaries and political links that allegedly enabled the diversion of funds during the YSRCP regime.

The arrest comes after earlier charge sheets flagged the involvement of bullion traders and after YSRCP MP Mithun Reddy was arrested and later granted conditional bail. The investigation has also revived scrutiny of former CM Jagan, under whose administration the alleged scam is believed to have flourished.