Author Archives: Janhavi Panani

July 2025 Issue is out!

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It features interesting articles like:

·      Iswai, Scotch Whisky Association and industry call FTA ‘a game-changer’

·      Taxes could affect Indian alcobev industry

·      Tilaknagar Industries to acquire Imperial Blue from Pernod Ricard India

·      Abhishek Modi works off his own manual. And that’s exactly why Rockford works.

Will the FTA Reshape India’s Alcobev Future

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History was made this July as India and the United Kingdom finally signed their long-negotiated Free Trade Agreement, marking a seismic shift in global alcobev dynamics. For the first time, Scotch whisky, British gin, Bottled-in-Origin (BIO) and bulk imports which are used for making Bottled in India (BIO) products as well as blending with IMFL will enjoy sharply reduced tariffs when entering India – dropping immediately from 150% to 75%, with a gradual reduction to 40% over the next decade. ISWAI calls this more than just a trade pact – for them and international makers – it’s a signal that India’s alcohol market is being redefined.

Now, India is already the world’s largest whisky consumer and the premium segment is growing rapidly. With rising disposable incomes, greater urbanisation and a young, curious consumer base, the country’s alcobev market is poised for robust growth all the way to 2035. This FTA could be the accelerator that not only opens the doors for premium global spirits but also nudges Indian producers to innovate and compete on even greater quality and branding.

While the effects of the FTA may be most visible in the shelves of India’s premium retail outlets and luxury hotel bars, its real impact is expected to be long-term. For consumers, the availability of aged Scotch whiskies at marginally lower price points will elevate the drinking experience. For Indian spirits companies, the competition will push them to rethink strategy, invest in premiumisation and perhaps even explore global exports with more urgency.

And this couldn’t have come at a better time for the global beverage alcohol industry. 2024 was a tepid year for Total Beverage Alcohol (TBA) volumes across traditional markets, many of which were weighed down by inflation and geopolitical uncertainty. For global alcobev giants, developing markets like India now represent the future – dynamic, untapped and increasingly premium.

Meanwhile, the Scotch whisky industry continues to raise its own bar. In 2024, global exports touched a record £5.4 billion. With India’s tariff barriers easing, the country could soon become one of the top value markets for Scotch, not just by volume but in prestige and premiumisation too.

The bottom line: This FTA is not just about bottles crossing borders – it’s may be about cultures converging, markets maturing and possibly a shared opportunity to shape the next era of premium spirits.

Radico Khaitan launches New Luxury Vodka – The Spirit of Kashmyr

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Radico Khaitan has announced its entry into the luxury vodka segment with the launch of ‘The Spirit of Kashmyr’. Having established itself in the premium whisky segment, Radico Khaitan now broadens its focus with an entry into high-end vodka.

Drawing inspiration from the cultural richness and natural heritage of Kashmir, the new vodka positions itself in the top-end of the Indian vodka category. The Spirit of Kashmyr is a small-batch, grain-based vodka distilled five times and charcoal-filtered for clarity. According to Radico -what sets it apart is its visual and vibrant packaging, a floral motif rendered in papier-mâché style, influenced by the artisanal legacy of Kashmir.

Available in two variants — Natural (Classic) and Saffron — the vodka is currently being introduced in select markets including Goa, followed by other key states in the coming months. Priced at ₹2,500 for a 750 ml bottle in Goa, the brand will be competing in the luxury tier, where vodka consumption in India has seen growing interest among urban consumers.This launch is in line with a broader trend of Indian players tapping into the country’s own cultural narratives to build globally relevant premium brands. With The Spirit of Kashmyr, Rooted in Indian heritage, the launch reflects a growing focus on blending premium craft with cultural authenticity.

GenZ NOT the generation of moderation, survey reveals

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IWSR’s latest Bevtrac survey of consumer sentiment, recently released shows that Gen Z is not shunning alcohol any more than older consumers – and in some cases may be pushing back against the moderation trend. 
Across the 15 markets covered by the Bevtrac survey, the proportion of Gen Z legal drinking age (LDA+) adults who claim to have consumed alcohol in the past six months has risen from 66% in March 2023 to 73% in March 2025. The upward swing in participation is even more pronounced in specific key markets over the same timescale: from 46% to 70% in the United States, from 66% to 76% in the UK, and from 61% to 83% in Australia. 

While the overall rate of 73% is still lower than the participation rate of all adults (78%) the survey found that that behaviour among Gen Z consumers who are drinkers is no longer significantly different from the behaviour of other generations.

More Spirits Consumption
In addition to increased participation, the Bevtrac survey also identified several trends among Gen Z LDA+ drinkers that indicate their behaviour is increasingly in line with the behaviour of previous generations in their 20s. They are more likely to partake from a wider range of categories of beverage alcohol than drinkers as a whole (Gen Z LDA+ drinkers reported consuming over five categories on average in the last six months, as opposed to just over four categories for Boomers). They are slightly more likely to drink spirits than all adult drinkers as a whole. They are significantly more likely to drink beverage alcohol at a bar, restaurant or club than adult drinkers as a whole (nearly half of Gen Z LDA+ drinkers reported on trade as their last location as opposed to just over a third of all adult drinkers).

Moderation remains a growing trend across all age groups, but Gen Z LDA+ drinkers are not, as widely believed, at the forefront of this change. When asked to agree or disagree with the statement “I am actively choosing to drink more,” Gen Z LDA+ drinkers were more likely to agree with this statement than any other generation. 

When Gen Z LDA+ drinkers do moderate, they follow different patterns than other generations. They are the generation most likely to engage in intermittent abstinence (nearly 60% of Gen Z LDA+ drinkers as opposed to just over 40% of all adult drinkers).

Richard Halstead, IWSR COO of Consumer Insights, says: “Moderation has been a growing trend among all drinkers for several years, but the idea that Gen Z LDA+ drinkers are somehow fundamentally different from other age groups isn’t supported by the evidence. For instance, we know that beverage alcohol consumption correlates with disposable income, and Gen Z came of age during a cost-of-living crisis. Rising prices have been especially acute in bars and restaurants – places that appeal most to Gen Z drinkers. 

“With every year that passes, more Gen Z drinkers are entering the workforce, and those already in the workforce are typically earning more. I think we should expect that, as their incomes rise, they will drink more often – just as Millennials did before them.

“The good news for the beverage alcohol industry is that, while moderation is set to be a long-term factor, consumption is not in a tailspin. According to this evidence, much of the recent decline is cyclical, not structural – and is definitely not the ‘fault’ of Gen Z.”

For 2025, IWSR defines generational cohorts as:   

  • Gen Z (LDA−27)
  • Millennials (28−43)
  • Gen X (44−59)
  • Boomers (60+)


Delhi to continue Excise Policy till March next

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The BJP-led government in Delhi has extended the current liquor policy till March 2026, marking the fifth extension since the Aam Aadmi Party’s (AAP) 2021-22 excise policy was scrapped following corruption allegations. The latest extension means the capital will continue to operate under the 2020-21 policy.

A June 27 order from the excise department confirmed that wholesale (L-1, L-1F), retail (L-2), and hotel, club, and restaurant licenses would be renewed on existing terms upon payment of applicable fees. The extension will cover the excise year from July 1, 2025, to March 31, 2026.

Over 50% of Delhi’s hotels, clubs, and restaurants applied for renewals within 24 hours of the department’s circular, with around 40% of the 713 government-run retail liquor stores also applying. Delhi has about 1,000 licensees in the HCR (hotels, clubs, restaurants) category.

Chief Minister Rekha Gupta has directed officials to prepare a new excise policy that balances revenue generation with transparency. A high-level committee led by Chief Secretary Dharmendra Kumar is currently reviewing models from other states.

According to the excise commissioner’s notice, there will be no change in price structure, label, source, or warehouse for existing licenses and registered brands. Renewals for 2025-26 will follow the same terms as 2024-25.

The current excise policy, referred to as the old policy has been in effect since September 2022. It replaced the AAP government’s reformative 2021-22 policy, which was scrapped after the Lieutenant Governor recommended a CBI probe into alleged irregularities.

Despite uncertainty over long-term reforms, Delhi’s excise revenue rose 13% in the first three quarters of FY 2024-25. The government collected ₹4,233 crore in excise duty between April and December 2024, compared to ₹3,718 crore during the same period in 2023-24. The full-year target for 2024-25 is ₹6,400 crore.

India and the UK sign landmark FTA

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India and the UK signed a landmark free trade agreement (FTA) on July 24th with the aim to improve market access and boost bilateral trade by around $34 billion annually. The agreement was signed in the presence of Prime Minister Narendra Modi and his British counterpart, Keir Starmer. The agreement was signed by the Indian Commerce Minister, Piyush Goyal and his counterpart Jonathan Reynolds.

The trade deal, finalised after three years of negotiations, is expected to benefit 99% of Indian exports from tariffs and streamline the export process for British companies exporting Scotch whisky, cars and other products to India. This will also help expand the overall trade basket.

The deal is expected to increase bilateral trade by $34 billion annually, making it the most significant trade pact for the UK since leaving the European Union and the most comprehensive one India has signed. Items like the world-famous Scotch whisky, British-made cars, cosmetics and medical devices are among many other products that will become cheaper in India as the nation’s decide to lower the tariff rates. 

‘Britain is open for business’ said Starmer and added ‘It is a deal that will bring huge benefits to both of our countries, boosting wages, raising living standards and putting more money in the pockets of working people. It is good for jobs, it is good for business, cutting tariffs and making trade cheaper, quicker and easier.’

He announced GBP 6 billion in investment and export between India and the UK which is expected to create more than 2,200 jobs for British workers. 

India’s average tariff on UK products will drop from 15% to 3% which means British companies selling products to India from soft drinks and cosmetics to cars and medical devices will find it easier to sell to the Indian market.

Whisky producers will benefit from tariffs slashed in half, reduced immediately from 150% to 75% and then dropped even further to 40% over the next ten years – giving the UK an advantage over international competitors in reaching the Indian market, he said.

Prime Minister Modi said “This agreement is not merely an economic partnership, but a plan for shared prosperity,”  adding that the UK trade agreement ensures better market access for Indian textiles, footwear, gems and jewellery, seafood and engineering goods.

 “I am delighted that after many years of hard work, a Comprehensive Economic and Trade Agreement has been concluded between our two countries today,” he added. 

ISWAI, Scotch Whisky Association and industry call FTA ‘a game-changer’

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  • ISWAI says Cheers to India-UK FTA as a Historic Moment
  • Tariff Reduction may provide Greater Choice and Access To Premium Products

The International Spirits and Wines Association of India (ISWAI), has applauded the signing of the India-UK Free Trade Agreement (FTA) calling it as a historic moment that underscores the shared commitment of both nations to strengthen economic ties and advance fair trade. ISWAI said – that for the alcobev sector, this agreement paves the way for a more balanced and equitable trade environment, particularly given that Indian alcohol exports to the UK have zero import duties.

Key Highlights
– Total Customs Duty to reduce from 150% to 75%, followed by a progressive reduction to 40% over the next decade
– Revised tariff structure to apply on both Bottled-in-Origin (BIO) and bulk imports
– India sells over 400+ million cases of Indian alcoholic spirits annually
– Scotch around 81% of the overall imports of 10.9 million cases of alcoholic spirits

Under the agreement, the Total Customs Duty on imported alcoholic spirits, limited to whisky and gin from the UK, will be halved at the first stage of entry-into-force from 150% to 75%, followed by a progressive reduction to 40% over the next decade. The revised tariff structure will apply to both Bottled-in-Origin (BIO) and bulk imports which are used for making Bottled in India (BIO) products as well as blending with IMFL.

Sanjit Padhi, CEO, ISWAI said, “The India-UK Free Trade Agreement is a historic moment in bilateral relations between the two countries and can become a trendsetter for other FTAs. ISWAI and its members welcome the deal.” Adding further, Padhi said, “For the alcobev sector, the immediate tariff reduction on Scotch whisky and gin imports from 150% to 75%, and subsequent reduction to 40% over the decade, will open up and expand market opportunities for the industry. The deal will significantly benefit Indian consumers, as premium international spirits will become more accessible, thereby accelerating the ongoing trend of premiumization. It will also stimulate growth across ancillary sectors such as hospitality, tourism, and retail, while potentially increasing revenue for Indian states. At a macro level, the agreement will leverage mutual synergies and competencies of both nations. As Indian Single Malts gain global recognition, improved market access can create mutual benefits, just as Scotch whiskies gain better accessibility in India, Indian whiskies can expand their footprint abroad.”

India, one of the world’s largest alcobev markets, which sells over 400+ million cases of Indian alcoholic spirits annually.  Yet imported spirits – Bottled in Origin and Bulk Bottled in India, account for a mere 2.6% of the total market. The imported category is dominated by whisky with Scotch being around 81% of the overall imports of 10.9 million cases of alcoholic spirits.

The reduction in import tariffs will also bring a huge benefit to all manufacturers in the Indian Made Foreign Liquor (IMFL) industry as 79% of the Scotch imported into the country is in Bulk form, which is used for bottling in India and for blending by local brands of whisky in the IMFL category.

Padhi added, ‘The FTA agreement is an important step by the Government of India towards facilitating equitable market access while safeguarding domestic industry interests through a calibrated and phased approach.

SWA says FTA will bring long-term benefits

The Chief Executive of the Scotch Whisky Association, Mark Kent, said “The Scotch Whisky industry has long championed a free trade agreement between the UK and India. The signing of the FTA is an historic moment and is an important milestone to reducing tariffs on Scotch Whisky in a growing market. This will contribute to the government’s growth objective, by laying the foundations for further investment and jobs.

“The FTA will bring long-term benefits for the industry, but the industry needs immediate support in order to realise the deal’s full potential. Distillers, especially smaller ones, are under significant pressure now – including as a result of tariffs in the US and a growing tax burden in the UK.

“Action by the UK government to alleviate these pressures will ensure distillers are in the best position to take advantage of the UK-India FTA once it comes into force.”

Diageo calls it ‘great moment’

Nik Jhangiani, Interim Chief Executive, Diageo, said “This agreement marks a great moment for both Scotch and Scotland, and we’ll be raising a glass of Johnnie Walker to all those who have worked so hard to get it secured.”

Chivas Brothers says it’s a ‘Sign of Hope’

Jean-Etienne Gourgues, Chairman and CEO, Chivas Brothers said “Signature of the UK-India FTA is a sign of hope in challenging times for the spirits industry.  India is the world’s biggest whisky market by volume and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s.”

The deal will support long term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade. Let’s hope that both governments will move quickly to ratification so business can get to work implementing the deal!

Piccadily launches INDRI AGNEYA

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Piccadily Distilleries has launched Indri Agneya, a lightly peated version of their Indri Indian Single Malt Whisky – aiming to bring a bold new dimension to the industry. The name for the malt ‘Agneya‘ is derived from the Sanskrit word meaning ‘belonging to fire’.

Indri Agneya is now available in Haryana at an MSP of Rs. 3800 and will be rolled out across premium retail outlets in India, global travel retail and select international markets in the coming months.

Maturation

The lightly peated version draws its character from maturation in both Sherry and Bourbon casks. According to the Master Blender Surrinder Kumar, the dual-cask aging imparts a layer of depth and complexity, evoking the elemental interplay of fire and wood. And the makers feel that this is the most refined Indian single malts that they’ve made to date.

Agneya is matured in select American oak casks that enhance its bold character adds Kumar. The indigenous 6 row barley is gently kilned over peat smoke, resulting in a spirit that imparts a whisper of smoke that enhances rather than dominates. This balance of peat, sweet malt, toasted oak and spice makes Indri Agneya a compelling choice for those curious about smoky whiskies – albeit the heaviness from peated malts.

Nosing

On the nose, it reveals rich notes of nuttiness and ripe fruit with a smooth, rounded texture, culminating in a gentle lingering smokiness. And it is this this smokiness that sets the Agneya apart from its flagship Indri-Trini. The makers feel that this expression redefines the spectrum of Indian single malts – delivering innovation, balance and sophistication in every sip.

Piccadily feels that Indri Agneya is more than just a product, it represents the makers bold ambition – to elevate Indian single malts on the global stage and continuously redefine the category. It is a reflection of India’s growing reputation for producing exceptional, terroir-driven whiskies that can compete with the best in the world.

HEINEKEN names Vineeth Suresh as India GCC Head

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HEINEKEN N.V., the Netherlands based brewing conglomerate has confirmed appointment of Vineeth Suresh to lead its India GCC in Hyderabad, HEINEKEN Business Services India Private Limited.

Vineeth most recently was a Partner with KPMG, leading the GCC sector in Consumer Markets & Retail. An experienced and transformative leader in the GCC space, he has previously been in leadership roles with other large organisations such as Diageo and Tesco.

Confirming the news, Ákos Magyari – Director HEINEKEN Business Services, stated that the appointment showcases the company’s strong commitment to use India as a strategic delivery and transformation hub. HEINEKEN Business Services India is an addition to HEINEKEN’s existing global network of connected hubs that will provide essential services and capabilities to Operating Companies within HEINEKEN. The business services network plays an important part in HEINEKEN’s EVERGREEN strategy.

Tilaknagar Industries to Acquire Imperial Blue from Pernod Ricard India

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  • Tilaknagar Industries to become a PAN-India Player in Alcoholic Beverages
  • Acquisition is a strategic move to fast-track Tilaknagar Industries’ whisky foray
  • Pernod Ricard to accelerate focus on Premiumisation and Innovation

IMFL manufacturer Tilaknagar Industries Limited (TI) has entered into a definitive agreement to acquire Imperial Blue business division (IB) from Pernod Ricard India Private Limited via slump sale, for a lump sum consideration, basis enterprise value of €412.6 million (which translates to approx. ₹4,150 crores as on date). The consideration includes deferred payment of €28 million (₹282 crore as on date), to be paid four years after the date of closure of the transaction.

The proposed transaction includes acquisition of the IB, with 22.4 million 9-litre cases sold in the year ended March 2025 across India and other markets, including two owned units and services from co-manufacturing bottlers across India.

Imperial Blue is the third largest whisky brand in India by volume, with over 25 years of brand heritage. The underlying business had reported revenue of ₹3,067 crore for the year ended March 2025. TI is one of the leading IMFL players with leadership in brandy, the second largest IMFL category. Mansion House Brandy, TI’s flagship brand, is one of the largest selling brands in India and globally.

This landmark acquisition, largest in Indian alcoholic beverages space by an Indian company, fast-tracks TI’s foray into whisky segment, the largest IMFL category in India. It also significantly expands TI’s distribution reach, reinforcing its evolution into a truly pan-India player having strong scale across both brandy and whisky with a combined volume of 34 million 9-litre cases for the year ended March 2025.

Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries Limited said, “Having achieved leadership in the brandy segment, it is now time for us to broaden our portfolio and cater to India’s diverse and evolving consumer base. While we continue to grow our business organically, this strategic acquisition allows us to enter the whisky category with one of the country’s most trusted and admired brands.”

Imperial Blue will act as TI’s launchpad for a significant whisky premiumisation journey, enabling TI to build a strong whisky portfolio across premium price-points. “We’re excited to build on Imperial Blue’s strong foundation and take it to new heights”, Dahanukar added.

Tilaknagar Industries reported revenue of ₹1,405 crore and EBITDA of ₹226 crore for the year ended March 2025. The transaction is a result of the continuous assessment and evaluation of strategic opportunities, in line with a longstanding policy to deliver sustainable value for the shareholders, employees and partners of TI.

India, second-largest market for Pernod Ricard

Pernod Ricard said that the sale strengthens Pernod Ricard India’s portfolio, enabling the business to fully tap into premiumisation trends and support sustained, profitable growth. As Pernod Ricard’s second-largest market, India is a strategic priority, and this realignment improves the ability to capitalise on the country’s strong macroeconomic fundamentals and long-term potential. Upon closing, the transaction is expected to be immediately and meaningfully accretive to Pernod Ricard India’s operating margin and net sales growth rate.

Pernod Ricard’s active portfolio management is a key contributor to its dynamic growth across categories and geographies. The transaction is the result of the Group’s continuous assessment of its strategic opportunities, in line with its long-standing commitment to deliver sustainable value to its shareholders, employees, clients and partners. 

Alexandre Ricard, Chairman and CEO of Pernod Ricard, stated, “We are pleased to announce the sale of the Imperial Blue business division, a strategic move to sharpen our focus on more profitable and faster growing brands in India, like in the rest of the world. This transaction represents a win-win for all stakeholders involved, both at the global and local level. It fuels our ambition to succeed even further in one of our top markets. This will further streamline our operations as we continue to invest in India’s outstanding growth.”

Jean Touboul, CEO of Pernod Ricard India added, “By exiting the Admix Value segment, this disposal will allow Pernod Ricard India to unlock further profitable growth and sharpen its focus on premiumisation and innovation. It will also enable the company to allocate resources more effectively toward high-growth brands such as Royal Stag, which has already surpassed the 30-million cases milestone, Blenders Pride, and international brands like Chivas, Jameson, Absolut, and Ballantine’s. 

Driving the next phase of growth, we are entering an exciting new chapter, one that will see bold innovations and an expanded premium portfolio tailored specifically for the evolving Indian consumer.”

The proposed transaction is subject to approval from the Competition Commission of India, with closure anticipated in about six months from signing the definitive agreement. TI will raise a mix of debt and equity to finance the transaction.

Deutsche Bank and Avendus Capital acted as financial advisors, with Avendus Capital also serving as the exclusive financing arranger to TI. Crawford Bayley & Co. and W.S. Kane & Co. acted as legal counsels while Deloitte served as the diligence advisor to TI.

Liquor Scam in Andhra Pradesh, Former Chief Minister under a cloud

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  • 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.