Jagan-led YSRCP used liquor scam cash to fund 2024 Assembly elections, says SIT

Hyderabad: The Special Investigation Team (SIT) of the CID, appointed by the TDP-led NDA government to investigate the alleged liquor scam in Andhra Pradesh during YSRCP regime, has established that approximately Rs 200-300 crore was systematically siphoned off from the total proceeds of crime amounting to Rs 3,500 crore mobilised by the liquor syndicate specifically for unlawful election expenses during the 2024 Assembly Elections by the YSRCP.

On Saturday, SIT had made a key arrest by taking Rajampet MP, PV Midhun Reddy who is a close aide of YSRCP supremo YS Jagan Mohan Reddy into custody.

The cash which was received in the form of kickbacks, was distributed to voters during the General Elections-2024 for the purpose of inducing the voters to vote for the YSRCP party.

The first chargesheet in the liquor scam, running over 300 pages filed in the Vijayawada court on Saturday and reviewed by DH, detailed how the illicit cash originated from illegal kickbacks extorted from liquor manufacturers and vendors.

These funds were allegedly channeled through shell companies and intermediaries under the direct instructions and protection of politically exposed persons. The SIT observed a crucial shift in the procurement system from an automated Order for Supply (OFS) process to a manual one after YSRCP came to power, creating opportunities for manipulation.

During the investigation, SIT teams found that these funds were stored in multiple safe houses and apartments across Hyderabad and Tadepalli in Andhra Pradesh. Cash consignments were collected from syndicate members in Hyderabad, packed in cartons, and transported covertly using both official government vehicles like Tirupati Urban Development Authority (TUDA) and private lorries. Notably, one of the accused in this case, former MLA, Chevireddy Bhaskar Reddy's son, Chevireddy Mohith Reddy was TUDA chairman between 2023 and 2024 when cash was transported for election purposes.

The operation bypassed security checks through political influence. “It has been found that the cash was transported multiple times between late 2023 and the 2024 general elections, with amounts ranging from Rs 8–12 crore per trip. Specific consignments were handed over at various locations, including Podili, Ongole, and Kavali, where the money was used to fund YSRCP candidates’ election campaigns and to distribute cash to voters. This entire cash logistics operation was coordinated by the then Chandragiri MLA Chevireddy Bhaskar Reddy, Balaji Kumar Yadav and Naveen, with additional support from TUDA drivers and trusted associates,” a top official of SIT told DH.

One last consignment of about Rs 8.36 crore was seized by police at Garikapadu check post a few days before the elections when hidden in a lorry specially modified to conceal cash boxes. “This cash seizure further evidences that the syndicate used intimidation, official resources, misuse of government vehicles, and large-scale cash transportation to influence the electoral process, thereby violating multiple provisions under the IPC, Representation of the People Act, and Prevention of Corruption Act. This was further corroborated by the statements of  witnesses,” added the SIT's top official.

Jagan, the beneficiary

Meanwhile, the SIT charge sheet clearly mentioned that the proceeds of the crime ultimately went to the then chief minister, YS Jagan Mohan Reddy.

Also owners of several distilleries were intimidated by the aides of Jagan and associates to tread the new excise policy line.

“From the investigation done so far, it is revealed that during the second half of 2019, a meeting of the owners of the distilleries was held by the Sajjala Sridhar Reddy at Hotel Park Hyatt, Hyderabad, where in the owners of the distilleries were told to co-operate with the orchestrated sale of liquor i.e. by raising planned indents and issuing manual OFS to select suppliers in the state of Andhra Pradesh. During the meeting, the owners were intimidated that if they do not accede to their proposals and no orders will be issued to them. Such intimidation for kickbacks by threatening them with no issuances of OFS and thereby receiving kickbacks amounts to extortion,” a top official of SIT told DH.

Under the threat of loss of business, several distilleries agreed to pay kickbacks at 12%. Soon, the percentage of kickbacks was increased to 20% of the base price.

“The collected amounts were eventually handed over to Kesireddy Rajasekhar Reddy(A-1). Rajasekhar Reddy would then pass the money to Vijay Sai Reddy(A-5), Mithun Reddy(A-4), Balaji (A-33) who would transfer it to former Chief Minister YS Jagan Mohan Reddy. On an average, Rs 50-60 crore was collected every month. (This is further corroborated by the statements of LW- 104),” said the chargesheet seen by DH.

Thus, through the discriminatory practices implemented as part of the conspiracy, certain brands experienced exorbitant sales. For example, the brands pertaining to ADAN and LEELA suppliers in Andhra Pradesh were given very high OFS violating the procedures, while popular brands were denied OFSs, preventing these brands from entering or surviving in the market, said the SIT chargesheet.