Jagan endorsed liquor kickbacks to fund welfare, YSRCP, says Andhra SIT

Amaravati: The prime accused in the alleged Rs 3,200 crore liquor scam during the erstwhile YSRCP regime has "confessed" that former Chief Minister YS Jagan Mohan Reddy had endorsed him to chalk out an excise policy which would generate revenues for the state and party (YSRCP), said a SIT official in his remand report.

However, the YSRCP rejected the charges, criticising the TDP-led NDA government in Andhra Pradesh for orchestrating a politically motivated liquor scam narrative against party leaders and employing media propaganda to propagate it.

"During the confession, he (Kasireddy Raja Sekhar Reddy) stated that Jagan Mohan Reddy, the then chief minister, endorsed him to chalk out an excise policy by which more revenue is generated for the state enabling the government to use the same for welfare measures on one side and to get party fund on the other side," said the report.

However, Reddy refused to sign his "confessional statement", it added.

Reddy, who was arrested recently, has been identified as accused person one (A1) in the alleged kickbacks-driven liquor trade between 2019 and 2024, said the Special Investigation Team official in the report.

In the remand report submitted to a local court in Vijayawada, Reddy, who reportedly served as the IT adviser to Jagan Mohan Reddy, was responsible for the discontinuation of popular liquor brand and the promotion of "blue-eyed brands" (favoured brands), along with other persons.

"Investigation so far done revealed that Kasireddy Raja Sekhar Reddy is the key person in criminal conspiracy and execution in organising the kickback driven liquor trade in AP (Andhra Pradesh) during 2019-2024," said the report submitted to the court recently.

According to the SIT probing the case, up to Rs 60 crore worth kickbacks per month used to be allegedly extorted.

The report named other persons who allegedly connived with Reddy, including retired IAS officer Dhanunjaya Reddy.

According to police, Reddy controlled the issuance of order for supply (OFS) of liquor to suppliers based on kickbacks received.

"He used to get sales dates once in five days, calculated the kickbacks amount, and used to collect kickbacks through Booneti Chanakya, Dileep, Kiran etc.., once in five days," said the report.

The SIT alleged that after collecting the kickbacks, Reddy used to send the proceeds to Midhun Reddy and others, among several other irregularities.

Further, it observed that the accused persons allegedly conspired to earn more profits by "killing" the brands of some companies and promoted their "blue-eyed brands".

Meanwhile, former social welfare minister and YSRCP leader Meruga Nagarjuna rebutted the remand report, asserting that the TDP government is orchestrating a politically motivated liquor scam narrative against YSRCP leaders.

He described the alleged scam as a scripted political drama crafted by Chief Minister N Chandrababu Naidu to divert public attention from TDP's past liquor scandals and the coalition government's alleged ongoing irregularities.

"SIT report (remand report) is fabricated and lacks credible evidence. The so-called liquor scam during YSRCP's tenure (2019-24) is entirely fictitious, relying solely on coerced statements obtained through harassment," said Nagarjuna in a release.

He highlighted that former Andhra Pradesh State Beverages Corporation Limited (APSBCL) officials such as Vasudeva Reddy and other lower-level employees, including Satya Prasad and Anusha, were allegedly threatened into providing false testimonies.

Alleging that distilleries' directors were subjected to physical assaults to extract statements in this case, the YSRCP leader highlighted that the SIT had employed 'manipulative tactics'.

Claiming that the SIT has failed to produce any financial trail, forensic proof or documentary evidence to substantiate its allegations, Nagarjuna alleged that Reddy has been portrayed as a central figure in the alleged scam.

"Raj Kasireddy, portrayed as the central figure in the scam, had no involvement in liquor policies or APSBCL operations. The SIT itself admitted that Kasireddy refused to sign any confession, yet his name, along with that of YS Jagan Mohan Reddy, was forcibly included in the narrative," he said.

He underscored that the Excise Department data "confirms" the previous YSRCP government's reforms had led to a significant decline in liquor sales, reducing distillery profits. Logically, distilleries would not pay bribes to a government that curtailed their earnings, he said, 'debunking' the SIT's claims of kickbacks.

Initially, the SIT alleged the scam caused losses to the exchequer, but upon finding no evidence, it shifted to accusing YSRCP leaders of receiving kickbacks, Nagarjuna claimed.

Moreover, he described the revival of the "fake" liquor scam narrative as a deliberate attempt by the coalition government in the state to"cover up" its ongoing irregularities.

The government is using SITs, media propaganda, and lawless tactics to mask its failures, said Nagarjuna, alleging that a CID case against Chandrababu Naidu's liquor scam was quietly shelved after TDP returned to power.