- MP Midhun Reddy Arrested
- Manufactured narrative designed for media theatrics and political vendetta, says Y.S.Jagan Mohan Reddy
In a major political development, the Andhra Pradesh Crime Investigation Department (CID) has filed a 305-page chargesheet alleging a ₹3,500 crore liquor scam during the previous YSR Congress Party (YSRCP) regime, identifying former Chief Minister Y. S. Jagan Mohan Reddy as a recipient of illicit kickbacks.
While not formally listed as an accused, the chargesheet states that Jagan allegedly received ₹50–60 crore every month through a nexus of party leaders and business intermediaries. As of now, no FIR has been filed against Jagan Mohan Reddy himself, but legal observers say the mention of his name in the chargesheet could be a prelude to deeper legal consequences, depending on the outcome of the SIT’s continuing probe.
The CID has arrested YSRCP Rajampet Member of Parliament P. V. Midhun Reddy in connection with the scam. Authorities claim Reddy played a key role in manipulating liquor policy to favour certain private players, facilitating a syndicate that profited from government contracts and distribution networks. He has been remanded to judicial custody until August 1. His arrest marks the highest-level detention in the case so far.
“The collected amounts were eventually handed over to Kesireddy Rajasekhar Reddy(A-1). Rajasekhar Reddy would then pass the money to Vijay Sai Reddy (A-5), Mithun Reddy (A-4), Balaji (A-33) who would transfer it to former Chief Minister Y S Jagan Mohan Reddy. On an average, Rs 50-60 crore was collected every month (during the 2019-24 YSRCP regime),” the charge sheet said as cited by a news agency. A key witness has reportedly corroborated these transactions, according to media reports.
The report labels Rajasekhar Reddy as the “mastermind and co-conspirator” behind the liquor scam, alleging he manipulated the excise policy, replaced automated Order for Supply (OFS) systems with manual processes, and appointed loyalists in APSBCL (Andhra Pradesh State Beverages Corporation Limited).
The chargesheet states that Rs 250–300 crore was routed in cash for election expenses of the YSRCP, coordinated by Rajasekhar Reddy and ex-MLA Chevireddy Bhaskar Reddy. The laundered money was allegedly invested in land, gold, and luxury assets in Dubai and Africa, via 30 odd shell companies.
Investigators allege that Rajasekhar Reddy, a close associate of the party, masterminded the scheme and served as a conduit for routing illegal funds. These funds allegedly passed through top YSRCP leaders including Rajya Sabha MP V. Vijayasai Reddy before reaching the former Chief Minister. Over ₹62 crore in suspicious assets and accounts has been seized so far, with further investigations ongoing into policy changes made between 2019 and 2024.
“The accused planned the change in excise policy and also its modalities, to ensure that they would receive large kickbacks, majority portion of such kickbacks was received in cash, gold bullion etc,” said the document. The news agency report added that a key meeting with distillery owners was allegedly held at Hyderabad’s Park Hyatt Hotel in late 2019. Organised by Sajjala Sridhar Reddy (A-6), the owners were reportedly threatened to cooperate with the manual OFS process and pay kickbacks of 12–20% or face order denials.
“During the meeting, the owners were intimidated that if they do not accede to their proposals and no orders will be issued to them. Such intimidation for kickbacks by threatening them with no issuances of OFS and thereby receiving kickbacks amounts to extortion,” the chargesheet mentioned.
“Political Vendetta”: Jagan Alleges
YSRCP chief Y. S. Jagan Mohan Reddy has strongly denied the allegations, calling the entire exercise “a manufactured narrative designed for media theatrics and political vendetta.”
In a statement released by the party, he accused the current TDP-led government of Chandrababu Naidu of orchestrating arrests and fabricating evidence through forced confessions. “This is nothing but political revenge by the ruling dispensation,” Jagan said. “We dismantled illegal belt shops (illegal extensions of a licensed liquor outlet); now they are being revived under the guise of governance.”
The chargesheet could have significant consequences for the YSRCP, which is already under pressure after its loss in the 2024 Assembly elections. Political observers say the case may reshape the public perception of the previous administration and redefine the narrative ahead of upcoming by-elections and civic polls.
Meanwhile, the CID and the Special Investigation Team (SIT) are expected to summon more individuals linked to the case, with financial audits and policy reviews already underway. With formal judicial scrutiny of the chargesheet expected soon, legal experts anticipate a prolonged court battle that is going to further polarize the political climate in Andhra Pradesh.
