Representative image of liquor bottles.
Credit: iStock Photo
Hyderabad: A Special Investigation Team (SIT) appointed by the TDP-led NDA government in Andhra Pradesh to probe alleged liquor scam during the previous YSRCP government has traced money trail of kickbacks involving a sitting Lok Sabha member and a former Rajya Sabha member from the YSRCP, two sources having direct knowledge of the findings of the SIT probe told DH. The probe also found how the cash was handled and moved. Notably, between 2019 and 2024 only cash was allowed in the liquor shops as digital payments were barred.
Highly placed sources in the Andhra government, told DH the SIT recorded statements from liquor manufacturers under Section 164 of the CRPC, establishing the existence of a scam estimated at Rs 4,000 crore. With these findings the Enforcement Directorate (ED) is also likely to launch a probe into the possibilities of laundering of the money received in kickbacks.
Most manufacturers confirmed that between Rs. 150 to Rs. 200 was extorted per case of liquor, amounting to approximately Rs 80 crore in kickbacks per month. Investigators discovered that the scam was strategically planned around YS Jagan Mohan Reddy's 2019 election promise of imposing prohibition. Under this pretext, private liquor stores were abolished, and only government-owned stores were permitted to sell liquor in the state. By bringing the entire liquor retail business under government control, the then political leadership was able to systematically perpetrate the alleged kickback scheme.
Once in state control, national brands were asked to leave and only local brands were allowed to operate. All national brands exited the state in these five years between 2019 and 2024 as they were unable to manage the extortion demands. Local brands such as "Daaru house" British empire beer, governor choice, president medal, seventh heaven, power star 99 whisky mushroomed and quality became a major issue. Money was routed through the then former MD of the AP State brewery corporation and an advisor of the then chief minister,” a source in the Andhra Pradesh government told DH.
The money trail was reportedly routed through the former Managing Director of the AP State Brewery Corporation and an advisor to the then chief minister.
Former Rajya Sabha member V. Vijaysai Reddy, who recently quit YSRCP, had publicly alleged that Raj Kasireddy, the then IT advisor to YS Jagan Mohan Reddy, was behind the liquor scam.
While direct evidence of YS Jagan's personal involvement remains unestablished, sources suggest he may be held liable for introducing the liquor policy that facilitated these alleged irregularities.
The TDP government constituted a SIT on November 6 to investigate the allegations of irregularities and corruption in Andhra Pradesh State Beverages Corporation Limited (APSBCL) under the YSRCP tenure. The SIT was followed by a CID probe into alleged irregularities in the APSBCL during the YSRCP regime.