ED intensifies probe in AP liquor scam, conducts fresh raids

Metro India News | AMARAVATI  

In a major development in the multi-crore Andhra Pradesh liquor scam, the Enforcement Directorate (ED) on Friday carried out simultaneous searches at the residences and offices of five key individuals linked to the case. The agency is probing the money laundering angle in what is estimated to be a Rs Rs 3,500-crore scam.

Those searched include YSRCP leader and former MLA Chevireddy Bhaskar Reddy, former OSD to ex-Chief Minister Y.S. Jagan Mohan Reddy, Krishna Mohan Reddy, retired IAS officer Dhanunjaya Reddy, Bharathi Cements Director Balaji Govindappa, and the prime accused Raj Kesireddy.

According to investigators, these individuals allegedly played key roles in the liquor policy irregularities during the previous regime. The Special Investigation Team (SIT) had earlier established their involvement, prompting the ED to launch a parallel probe under the Prevention of Money Laundering Act (PMLA).

The latest searches were conducted across multiple locations, including Hyderabad, Tirupati, and Vijayawada, as part of efforts to trace illicit funds and uncover documentary evidence. Officials suspect that large sums of money were diverted through shell companies using fake invoices under names “Olvic,” “Arroyo,” and “EasyLoad.” The ED has also found indications that funds were routed into the real estate sector in Hyderabad and converted into gold through jewellery firms in Tamil Nadu.

Investigations have revealed that illegal collections in the scam averaged nearly Rs 100 crore per month. The ED had registered a case in April-May last year based on the SIT’s FIR and has since expanded the scope of its inquiry.

Earlier, in September, the agency conducted nationwide raids across eight states, seizing crucial documents. In January this year, it again searched premises linked to the accused. By March, assets worth Rs 441 crore were attached, including Rs 270 crore linked to Raj Kesireddy alone. These include prime land parcels valued at Rs 184 crore and additional properties tied to former AP Beverages Corporation MD D. Vasudeva Reddy and associates.

The ED’s chargesheet alleges that the dismantling of a transparent online ordering system and the introduction of manual processes enabled manipulation of liquor supply, favouring select brands in exchange for kickbacks, causing massive losses to the state exchequer.