kiranmai tutika I amaravati

The multi-crore liquor scam in Andhra Pradesh has taken a dramatic turn with the Enforcement Directorate (ED) launching simultaneous raids across five states, including Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Delhi. Nearly 20 premises linked to suspects in the case were searched bringing fresh focus on the excise policies framed under the previous YSRCP government and the allegations of deep-rooted corruption tied to them.

The probe, already being pursued by a Special Investigation Team (SIT) constituted by the state, has now widened into money laundering aspects, suggesting that the scandal may have national ramifications. The SIT had earlier named 29 individuals and 19 companies as accused, with 12 arrests made so far. Among those under the scanner are Rajampet MP PV Midhun Reddy, son of senior YSRCP leader Peddireddy Ramachandra Reddy, and Jagan Mohan Reddy’s former advisor Raj, who is alleged to have overseen the entire liquor syndicate.

In 2019, YSRCP chief YS Jagan Mohan Reddy came to power promising phased prohibition. His government moved swiftly to overhaul the excise policy: nearly 3,500 liquor outlets were taken over by the government, their operating hours reduced, and prices hiked to discourage consumption.

The entire retail liquor trade was handed to the Andhra Pradesh State Beverages Corporation Limited (APSBCL). Simultaneously, a Special Enforcement Bureau (SEB) was created to curb smuggling and illicit brewing.

But as the months rolled on, familiar liquor brands began vanishing from store shelves. Popular products from Seagram’s, McDowell’s, and United Breweries made way for unheard-of labels such as President Medal, Boom, and Governor’s Choice. Social media was quick to mock these so-called “J brands,” with TDP alleging that they were nothing more than party-controlled products pushed through distilleries linked to YSRCP leaders.

By 2021, rampant smuggling from Telangana and Karnataka forced the state to reduce prices. But allegations persisted that YSRCP men were running a liquor monopoly – pushing their own brands, choking out multinational companies, and inflating profits through manipulated supply chains. 

The Telugu Desam Party (TDP), then in opposition, consistently accused the YSRCP government of engineering the liquor trade for kickbacks. Chandrababu Naidu and Jana Sena chief Pawan Kalyan charged that digital payments were deliberately scrapped to allow manipulation of sales. Instead, APSBCL switched to cash-only transactions – a move that accounted for nearly 99% of liquor sales, worth about ₹99,000 crore.

TDP alleged that this opaque system allowed YSRCP leaders to funnel massive sums into party coffers, while distilleries linked to their associates minted money. Worse, consumers were left with no choice but to buy “J brands,” some of which were later found to contain methyl and ethyl alcohol, raising public health concerns.

Since returning to power in 2024, Naidu’s TDP-led coalition has reversed course. Digital payments have been made mandatory, alcohol prices revised to curb smuggling, and a CID probe ordered into irregularities during the YSRCP regime.

The scandal has rattled the YSRCP, now in opposition. Meanwhile, ED’s entry into the case has raised the stakes, as many suspect that the probe could unearth financial trails linking Andhra Pradesh’s liquor policy to money laundering networks across states.

Meanwhile, Excise Minister Kollu Ravindra launched a scathing attack on the previous YSRCP government, alleging that the scam flourished under its watch. He accused the then administration of supplying spurious liquor, endangering public health. “For five years, substandard liquor was sold, leading to health problems for many citizens. The SIT is probing these irregularities and the truth will soon come out,” Ravindra told the Legislative Council during a debate on belt shops and illicit liquor sales.

Responding to questions raised by YSRCP MLCs Thota Trimurthulu and Shivarami Reddy, Ravindra dismissed claims that the previous government had managed the liquor sector responsibly.  “We have never treated liquor as a revenue source. Our policy is so transparent that even neighbouring states are studying it. Violators face strict action, a penalty for the first violation and license suspension for the second. A robust monitoring mechanism is in place to oversee supply and ensure accountability,” the minister said.