metro india news  I amaravati

In a major breakthrough in the ongoing investigation into the Rs. 3,200-crore Andhra Pradesh liquor scam, the Special Investigation Team (SIT) has arrested Balaji Govindappa, a key accused and Executive Director of Bharathi Cement Pvt. Ltd. Acting on precise intelligence, SIT officials tracked Balaji to Mysuru, Karnataka, and apprehended him on Tuesday. He is being brought to Vijayawada under a transit warrant for further interrogation.

Balaji's arrest is being seen as a significant development in a scandal that has rocked the political and corporate corridors of Andhra Pradesh. He is the fifth person to be arrested in connection with the case, which centers around large-scale irregularities in liquor procurement, distribution, and alleged political and corporate collusion during the previous YSRCP regime.

Balaji Govindappa had been absconding for weeks after the Andhra Pradesh High Court dismissed his anticipatory bail petition. According to officials, he went underground immediately after the verdict, reportedly hiding around Karnataka. His arrest follows a recent search of his residence in Hyderabad, where SIT teams reportedly gathered critical leads about his whereabouts.

Balaji has been officially listed as Accused No. 33 (A-33) in the liquor scam FIR registered by the Economic Offences Wing of the AP CID. His connection to Bharathi Cement—a company with reported links to high-profile political figures—has intensified scrutiny, as investigators dig deeper into financial transactions and business-political nexus allegedly central to the scam.

The liquor scam is alleged to have occurred between 2019 and 2024, a period that coincides with the YSR Congress Party’s term in power. The SIT, in its remand reports and internal communications, has named several influential figures who are suspected of playing major roles in the scam.

Among them are Rajampet MP P.V. Midhun Reddy, former MP V. Vijayasai Reddy, YSRCP Advisor Sajjala Ramakrishna Reddy, Retired IAS officer Dhanunjaya Reddy, Businessmen Vasudeva Reddy, Satya Prasad, Krishna Mohan Reddy and Bharathi Cement Director Balaji Govindappa.

While these individuals have not all been formally charged or arrested, sources indicate that their financial links, communications, and meeting records are under intense scrutiny. Meanwhile, YSRCP MP P.V. Midhun Reddy suffered a blow in the Supreme Court, which dismissed his plea seeking anticipatory bail in the case. The apex court advised the parliamentarian to approach the High Court instead.

Notably, the SIT had not yet listed him as an accused at the time of his earlier petition, and the government had then stated it had no intention to arrest him—leading the High Court to reject the plea. However, Midhun Reddy has since been officially named as an accused, potentially changing the course of legal proceedings against him.

Adding further pressure, the Enforcement Directorate (ED) recently registered a money laundering case linked to the liquor scam. The ED's case is based on the FIR filed by the AP CID in September 2024 and is expected to open a new front in the investigation, focusing on illicit fund flows, shell companies, and benami transactions allegedly used to siphon off public money.

The case has already become a flashpoint in Andhra Pradesh’s political landscape, with opposition parties accusing the former YSRCP regime of running a “liquor mafia” that benefited politically connected businessmen.This scam is shaping up to be one of Andhra Pradesh’s largest financial frauds, not only in terms of money siphoned but also due to its alleged political protectors and corporate beneficiaries.