Metro India News | AMARAVATI

A supplementary chargesheet filed by the Andhra Pradesh Police in the alleged Rs 3,500-crore liquor scam claims former Chief Minister YS Jagan Mohan Reddy chaired a crucial 2019 meeting that finalised decisions under the new liquor policy. The policy transferred liquor retail operations to the state-run Andhra Pradesh State Beverages Corporation Ltd (APSBCL).

The 124-page supplementary chargesheet, filed by the Special Investigation Team (SIT), follows a 305-page initial chargesheet that mentioned Jagan as a recipient of alleged kickbacks averaging Rs 50–Rs 60 crore per month, though it did not name him as an accused.

According to the chargesheet, kickbacks were routed through low-profile individuals like office boys and employees, who acted as couriers and deposited illicit funds into a network of bank accounts. This structured method of layering funds was aimed at concealing the origin of the money, forming a classic case of money laundering.

The SIT alleged that Jagan also played a key role in appointing IRTS officer D Vasudeva Reddy—named as accused No. 2—as APSBCL Managing Director, overriding recommendations from senior officials for other postings. A letter from the then MD of APSBCL, quoted in the chargesheet, confirmed that discussions on shop count, infrastructure, hiring, and transportation were held during the July 29, 2019 meeting chaired by Jagan.

The chargesheet also flags irregularities in the hiring of consultancy firm KPMG without a tender process. KPMG’s recommendations allegedly supported flawed changes in the excise system, including replacing automated supply orders with manual ones. During the investigation, SIT found that a portion of the kickbacks was paid as "salary" to employees, who were then asked to reroute the funds to other accused persons.

YSRCP MP PV Midhun Reddy has already been arrested in connection with the case. The Enforcement Directorate (ED) has also registered a case under the Prevention of Money Laundering Act (PMLA) and filed an Enforcement Case Information Report (ECIR) in May. Reacting to the developments, senior YSRCP leader and former minister Ambati Rambabu dismissed the allegations as “baseless” and politically motivated.