ED expands probe in AP liquor scam case, Raids 20 locations across 5 states
Raids were carried out at 20 locations
By - Newsmeter Network
Hyderabad: In a major development in the ₹3,500 crore Andhra Pradesh liquor scam, the Enforcement Directorate (ED) has conducted large-scale searches across Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, and Delhi.
Raids were carried out at 20 locations, including offices and companies allegedly linked to the accused, focusing on those suspected of routing kickbacks through bogus and inflated invoices. Premises of certain accused individuals were also searched.
12 arrested so far
Meanwhile, a court has granted bail to three accused — K. Dhanunjaya Reddy, Krishna Mohan Reddy, and Balaji Govindappa — on the condition of furnishing a ₹1 lakh surety each. The case pertains to the alleged ₹3,200-crore liquor scam during the previous YSRCP regime, in which 12 people have been arrested so far.
YSRCP Rajampet MP Midhun Reddy has been named as Accused No. 4, charged with conspiring with others in diverting funds collected from distillery companies.
Earlier in July, officials seized ₹11 crore in cash, hidden in 12 cardboard boxes disguised as office files, from Sulochana Farm Guest House in Shamshabad, Telangana, based on disclosures by Accused No. 40, Varun Purushottam.
What is the AP liquor scam 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).
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.
