SIT Arrests Ex-Andhra Officials in ₹3,200 Cr Liquor Scam
In a major breakthrough in the ₹3,200 crore liquor scam case, the Special Investigation Team (SIT) of Andhra Pradesh Police has arrested two senior former officials from the previous YSRCP-led government. Retired IAS officer K. Dhanunjaya Reddy, who served as Secretary in the Chief Minister’s Office, and P. Krishna Mohan Reddy, former Officer on Special Duty to then Chief Minister Y.S. Jagan Mohan Reddy, were taken into custody after their anticipatory bail pleas were rejected by the Supreme Court.
The court observed that granting bail at this stage could interfere with an ongoing and sensitive investigation. The two were questioned for nearly nine hours before being placed under arrest. They are to be presented before the special Anti-Corruption Bureau (ACB) court in Vijayawada for further proceedings.
₹3,200 Crore Kickbacks Under ED Scanner
The Enforcement Directorate (ED) has stepped in to examine the suspected money laundering component of the case. An Enforcement Case Information Report (ECIR) has been registered under the Prevention of Money Laundering Act (PMLA). The ED is tracking the trail of ₹3,200 crore in alleged kickbacks received from liquor distributors and distilleries.
Investigators believe the funds were moved through a complex web of fictitious and shell companies, making it difficult to trace the actual beneficiaries. Among those under scrutiny is Rajasekhar Reddy Kesireddy, the prime accused, who is currently in judicial custody. The ED has sought permission from the court to question him further to uncover connections to top political leadership and bureaucrats.
Deepening Probe Points to Political Collusion
The SIT has identified at least 33 accused so far, including politicians, bureaucrats, and private contractors, indicating a wide nexus. Opposition parties have accused the former YSRCP administration of deliberately manipulating liquor policy to centralize control and enable massive corruption.
According to the SIT, the scam involved creation of dummy firms, fraudulent invoicing, benami financial operations, and deliberate market manipulation to sideline national liquor brands and promote entities linked to the accused. Evidence collected so far includes tampered financial records, phone intercepts, and land transaction documents used to park proceeds of crime.
Legal and Political Fallout Expected
The case is already being seen as a litmus test for Andhra Pradesh’s commitment to fighting high-level corruption. The arrests and ongoing investigations have dealt a major blow to the YSR Congress Party’s credibility, especially in the lead-up to elections.
As the ED deepens its probe and SIT expands the list of accused, the liquor scam could become one of the largest and most politically sensitive corruption scandals in the state’s history. The case is likely to set a legal precedent for how such systemic financial crimes are prosecuted across India.
