Enforcement Directorate Intensifies Probe into Andhra Pradesh Liquor Scam
Investigation into the Liquor Scam
Photo: IANS
Vijayawada, April 24: The Enforcement Directorate (ED) has escalated its investigation into a significant liquor scam in Andhra Pradesh, executing searches at the residences and offices of six individuals implicated in the case on Friday.
ED officials initiated coordinated searches early Friday morning targeting the properties of prominent figures, including YSR Congress Party leader and former MLA Chevireddy Bhaskar Reddy, key suspect Kesireddy Rajasekhara Reddy, and Bharati Cements director Balaji Govindappa, along with Krishna Mohan and Dhanunjaya Reddy across Hyderabad, Vijayawada, and Tirupati.
The agency's actions are based on findings from the Special Investigation Team (SIT).
Previously, on March 9, the ED had interrogated four suspects, including Krishna Mohan and Dhanunjaya Reddy.
Krishna Mohan previously served as the Officer on Special Duty (OSD) for former Chief Minister Y.S. Jagan Mohan Reddy, while Dhanunjaya Reddy held the position of secretary in the Chief Minister’s Office (CMO).
The questioning occurred shortly after the ED seized assets valued at Rs 441.63 crore belonging to Kesireddy Rajasekhara Reddy, his family, and associated entities, as well as other individuals under the Prevention of Money Laundering Act (PMLA), 2002.
This investigation was prompted by an FIR filed by the CID of Andhra Pradesh, following a complaint from the Principal Secretary to the Government, highlighting a loss of Rs 4,000 crore to the state treasury.
The ED's inquiries have uncovered that cash kickbacks were collected and stored at various sites in Hyderabad, later being redistributed or disposed of by designated cash handlers within the syndicate.
So far, the investigation has traced a money trail amounting to Rs 1048.45 crore in kickbacks, which several distilleries were coerced into paying in cash, gold, and through control over some distilleries, as well as profits from liquor transportation.
Allegedly, the proceeds from these crimes were utilized for acquiring real estate and enriching members of the liquor syndicate and their affiliates.
The ED has indicated that a significant portion of the proceeds has been concealed or dissipated by the accused.