Jagan's close aide and YSRCP MP Midhun Reddy arrested in Rs 3,200-crore Andhra liquor scam case

Hyderabad: The Special Investigation Team (SIT) arrested YSRCP MP PV Mithun Reddy on Saturday night, calling him a "core conspirator" in the alleged liquor scam and accusing him of using kickbacks to fund the 2024 elections. The Rajampet MP was taken into custody after seven hours of interrogation at the SIT office in Vijayawada.

Mithun Reddy, who serves as YSRCP's floor leader in the Lok Sabha and is considered a close aide of party chief YS Jagan Mohan Reddy, has been named as the fourth accused (A4) in the FIR. His arrest represents a significant blow to the opposition party, given his prominence as the party's representative in Delhi.

Both the Andhra Pradesh High Court and the Supreme Court had rejected Mithun Reddy's anticipatory bail petitions, with the apex court dismissing his plea on Friday. This cleared the path for Saturday's arrest, which followed a series of detentions by the SIT in recent days.

The SIT filed a preliminary chargesheet exceeding 300 pages in a Vijayawada court on Saturday. SIT slueths have questioned 268 witnesses and seized Rs 62 crore in connection with the case, with a second chargesheet expected within 20 days.

The investigation has already netted several high-profile arrests, including former IAS officer K Dhanunjay Reddy, who served as Chief Minister's Secretary, and P Krishnamohan Reddy, Officer on Special Duty to the Chief Minister between 2019 and 2024. Both officials, regarded as Jagan's "eyes and ears," are listed as accused numbers 31 and 32 respectively.

Top SIT sources told DH that investigations revealed Mithun Reddy was a "core conspirator from inception to execution," orchestrating policy changes and coordinating with co-accused to secure kickbacks from distilleries and suppliers. The MP allegedly directly influenced APSBCL officials, participated in multiple planning meetings, and issued instructions that caused massive financial losses to the state.

According to the SIT, kickbacks were routed through entities including SPY Agro, Sanhoc Labs, and Dcart Logistics, with Rs 5 crore credited to PLR Projects Pvt. Ltd., a company closely linked to his family. The agency further alleges that Mithun Reddy spent these ill-gotten gains during the 2024 General Elections across multiple constituencies in Andhra Pradesh to secure undue political advantage.

"He possesses information about how cash was collected through kickbacks and commissions, the various locations where this cash was pooled, and how it was transported for illegal purposes," a senior SIT source explained. "His custodial interrogation is necessary to unravel the larger conspiracy behind cash distribution and other members of the liquor syndicate who induced voters to support particular candidates or parties," the source added.

The MP faces charges under multiple sections of the Indian Penal Code (409, 420, 120B) and the Prevention of Corruption Act, with offenses carrying potential sentences exceeding 10 years.

Government sources revealed that the SIT has traced a money trail involving kickbacks to sitting and former MPs from the YSRCP. The investigation has established evidence of irregularities estimated at Rs 3,500 crore, with liquor manufacturers providing statements under Section 164 of the Criminal Procedure Code.

The YSRCP has strongly condemned the arrest as political vendetta by Chief Minister Chandrababu Naidu. In a joint statement, former ministers Botsa Satyanarayana, Perni Venkatramaiah (Nani), Ambati Rambabu, Merugu Nagarjuna, and party general secretary G. Srikanth Reddy denounced what they called the misuse of power to target opposition leaders.

The party leaders characterized the case as entirely fabricated, based on forced confessions and manufactured evidence. They argued that the current government is attempting to divert attention from liquor-related irregularities that occurred during Chandrababu Naidu's previous tenure from 2014 to 2019.

Defending their administration's record, YSRCP leaders highlighted their transparent liquor policy, which reduced the number of liquor outlets and eliminated belt shops and permit rooms. They vowed to continue fighting what they termed political conspiracies with determination.

The TDP government established the SIT on November 6 last year to investigate alleged irregularities and corruption within the Andhra Pradesh State Beverages Corporation Limited (APSBCL) during the YSRCP administration. The investigation continues to expand as authorities work to uncover the full extent of alleged financial irregularities in the state's liquor trade.