Andhra Pradesh Liquor Scam: SIT Uncovers ₹11 Crore in Cash
Major Developments in the Andhra Pradesh Liquor Scam
Vijayawada, July 30: In a significant turn of events regarding the liquor scam in Andhra Pradesh, the Special Investigation Team (SIT) has discovered ₹11 crore in cash at a guesthouse located near Hyderabad.
The cash was found stored in 12 cardboard boxes at the Sulochana Farm Guesthouse in Kacharam, situated in the Shamshabad area of Rangareddy district, according to sources.
This seizure occurred during searches conducted at the residences and offices of individuals implicated in the scam, which reportedly took place during the tenure of the YSR Congress Party.
In addition to the cash, the SIT also confiscated liquor from the same location. Sources within the SIT indicated that the cash and liquor were concealed under the instructions of Kesireddy Rajashekar Reddy, the main suspect in the case.
The guesthouse was searched based on information provided by Varun Purshottam, who is identified as accused number 40 in the investigation.
The investigation is also examining the involvement of Chanikya and Vinay, both of whom are accused in the case, in hiding the cash. It is reported that Varun concealed the money in 12 boxes at the direction of Kesireddy and Chanikya.
During his interrogation, Varun allegedly admitted to his involvement and disclosed details regarding the cash and liquor.
The scam is said to have occurred during the YSRCP's governance from 2019 to 2024.
Following the election of the TDP-led NDA last year, a case was filed at the CID Police Station in Mangalagiri, invoking various sections of the IPC and the Prevention of Corruption Act of 1988.
The Crime Investigation Department (CID) initially began the inquiry after a complaint from an Excise Department official. Subsequently, the government established an SIT, led by S.V. Rajashekhar Babu, the Commissioner of Police for NTR District, to further investigate the matter.
The SIT has identified extensive irregularities and misappropriation of funds related to the liquor policy enacted during 2019-2024.
Reports suggest that a kickback scheme involving approximately ₹3,500 crore was uncovered, indicating significant financial misconduct over the five-year period.
Allegations have surfaced that leaders of the YSR Congress Party promoted the new liquor policy, introduced new brands, and accepted kickbacks from distillery companies, resulting in substantial losses for the government.
To date, the SIT has arrested 12 individuals, including YSRCP MP P. V. Midhun Reddy.
Key figures implicated include Kesireddy Rajashekar Reddy, former IT advisor to ex-Chief Minister Y.S. Jagan Mohan Reddy; K. Dhanunjaya Reddy, Secretary in the Chief Minister’s Office; Krishna Mohan Reddy, Officer on Special Duty (OSD) to the former Chief Minister; Balaji Govindappa, director of Bharati Cements; former MLA Chevireddy Bhaskar Reddy; Rajashekar Reddy’s personal assistant Dilip Kumar; Chanikya; and Sajjala Sridhar Reddy.
The SIT submitted a preliminary charge sheet on July 19, which mentions former Chief Minister Y.S. Jagan Mohan Reddy as a recipient of kickbacks, although he has not been formally charged.
The charge sheet claims that between 2019 and 2024, an estimated ₹50 to 60 crore was collected monthly from distilleries and funneled through a network of associates and shell companies.