Jagan Reddy Andhra Liquor Scam – Chargesheet Details
andhra Pradesh Liquor Scam: ED Alleges Kickbacks, Laundering of ₹300 Crore for YSRCP
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New Delhi: The Enforcement Directorate (ED) has alleged that a former Andhra Pradesh minister and other key figures in the state’s liquor policy created shell distilleries to funnel kickbacks and launder money for the ruling YSRCP party. The ED’s chargesheet, filed in a special court, details a complex scheme involving the manipulation of the state’s excise policy to generate illicit funds, with a important portion allegedly channeled for election expenses.
allegations of Kickbacks and Shell Companies
The ED’s inquiry into the alleged liquor scam in Andhra Pradesh has brought serious accusations to light, implicating former minister M. Sucharita and other prominent individuals. According to the chargesheet, the accused allegedly established shell distilleries and channeled kickbacks to Chief Minister Jagan Mohan Reddy through an intermediary, Balaji Govindappa.
The chargesheet further claims that Rajasekhar, another accused, was instrumental in creating these shell entities. he is alleged to have facilitated the transfer of significant cash amounts, estimated between ₹250 crore and ₹300 crore, for election purposes on behalf of the YSRCP. This operation was reportedly carried out in conjunction with Chevireddy Bhaskar Reddy, a former MLA. The ED also alleges that over 30 shell firms where used to launder these funds.
Routing of Funds and Policy Manipulation
The ED’s investigation suggests that the illicitly obtained funds were afterward invested in acquiring assets such as land, gold, and luxury properties in Dubai and Africa. The police contend that the architects of this scheme deliberately introduced a new liquor policy during the previous YSRCP regime. The underlying motive, according to the chargesheet, was to gain complete control over the supply and sale of liquor, thereby enabling the systematic earning of commissions and kickbacks between 2019 and 2024.
The chargesheet explicitly states that the accused meticulously planned the changes to the excise policy and its operational modalities. This strategic planning was aimed at ensuring the receipt of substantial kickbacks, a significant portion of which was allegedly received in the form of cash and gold bullion.
Withholding Approvals for Non-Compliance
Further details emerging from the investigation reveal a deliberate tactic employed by the accused. The ED’s findings indicate that approvals for Off-Site Supply (OFS) were intentionally withheld from brands and distilleries that did not comply with the kickback demands. This suggests a coercive mechanism to ensure the flow of illicit funds.
arrest of YSRCP MP
In a significant advancement related to the ongoing probe, YSRCP Lok Sabha member P.V. Midhun Reddy was arrested by the Special Investigation Team (SIT) on Saturday after several hours of questioning.
ED’s Money Laundering Case
The Enforcement Directorate had previously initiated a money laundering case in May to investigate the alleged liquor scam, underscoring the gravity of the financial irregularities being examined. The ongoing investigations by multiple agencies highlight the extensive nature of the alleged conspiracy and its far-reaching implications.