AP CID names Naidu in case against TDP granting illegal liquor licenses

Vijayawada: With no legal relief to former chief minister and TDP supremo Chandrababu Naidu in sight, another case has been filed by the Andhra Pradesh Crime Investigation Department (AP CID) regarding the TDP government allegedly granting illegal licenses to liquor companies during his regime.

Naidu is designated as A3 (Accused 3) in the case under the Prevention of Corruption Act. The ACB court has granted permission for further proceedings.

The FIR was filed by D Vasudeva Reddy, commissioner of AP Beverages Corporation. As per the FIR, there are three accused in the case: IS Sri Naresh, Kollu Ravindra, N Chandrababu Naidu and ‘known and unknown public servants.’

Loss of Rs 1,300 crores to state

The highlights from the complaint include Rs 1,300 crores of loss to the State when the TDP government led by Chandrababu Naidu removed privilege fees payable by bars in 2016 without following business rules.

Discrepancies were found in dealings with SPY Agro Ltd in Nandyal. Despite the High Court’s directive on enhanced license fees, the government allegedly extended the benefits. The decision to delete the privilege fee didn’t form the excise policy but was deliberately done to favour the MP SPY Reddy who owns it, the FIR said.

Discrepancies found by AP Beverages Corporation in 2019

As per the FIR, the AP Beverages Corporation – as an entity created under the statute with monopoly over the subject activity – undertook a periodic review of the policies of the State in the past, in pursuance of the stated policy of the State for progressive prohibition.

The corporation has been working in consonance with the policy decisions of the State since 2015. While undertaking a review of the earnings and revenue for the State at the relevant point in time during 2014-2019, the following glaring policy decisions came to light, which had the effect of reducing the revenues for the State and benefitting the licences.

‘Undue favour to few suppliers/distilleries’

It was also found out that contrary to the recommendations of the committee, constituted for the purpose of the Government of AP, few distilleries were favoured by giving LOI (Letter of Intent).

“Contrary to the recommendations of the committee constituted, permission was granted to the establishment of distilleries beyond the recommended capacity by the committee. As per the rules governing the committee, the government is bound by the recommendations of the committee and without reference to any further justification, factual or legal, such a decision was taken, in a departure from rules, to benefit the private distilleries i.e., PMK Distilleries, Visakha Distilleries and three others,” said the FIR.

Demand exaggerated by merchants

New brands were permitted by the public servants, after a notification dated March 18, 2019, for the general election was issued, without there being any public interest. The government hurriedly, without any public interest, granted approval for the following brands, only to benefit such suppliers.

The FIR also stated that it was also startling that the suppliers, in conspiracy and collusion with the licences, exaggerated the demand for certain products, ‘without there being a market demand for the same, thereby resulting in distorted projection being given to the corporation.’

There being no mechanism for verification of the actual demand, the data of the supplies and the quantities for the relevant period 2015-2019, shows that four to five companies were preferred on a selective basis for extraneous reasons, and orders were placed for their products disproportionate to their market share, to the extent of 70 per cent of the brands being garnered by identified individual suppliers.

The procurements undertaken, clearly as a part of a prior concert, design, and common intention, perhaps with the participation of various public servants at various stages of decision-making, were to confer unlawful pecuniary gain to a few entities, the FIR said. The data sheet showing the quantities supplied to various entities has been submitted for further investigation.

While reporting on the delay in reporting the complaint, the FIR stated, “While analysing the previous files for suggesting the policy issues to the government, the complainant came to know about the facts noted in the report and thereby took time for proper analysis and conclusions on those facts.”

Naidu who was arrested by the CID in Nandyal in the early hours of September 9 for allegedly masterminding the skill development scam is still in Rajamahendravaram Central Prison. He has been denied bail several times.

The Andhra Pradesh High Court on Monday reserved judgment on the bail petition filed by former Naidu. The court might announce its further decision on the interim bail in the same case on Tuesday.