CID links former Andhra CM Jagan Reddy to Rs 3,500 crore liquor scam, YSRCP cries political vendetta

In a major twist in the Rs 3,500-crore liquor scam, the Andhra Pradesh Crime Investigation Department (CID) has reportedly unearthed evidence implicating former Chief Minister and YSR Congress Party (YSRCP) president Y.S. Jagan Mohan Reddy in the alleged kickbacks associated with the state’s liquor policy. While Reddy has not been formally named as an accused, the findings are part of a chargesheet recently filed before a Vijayawada court, which is yet to take cognizance of the case.

According to sources close to the investigation, bribes estimated at ₹50–60 crore were allegedly collected monthly between June 2019 and May 2024. These funds were reportedly facilitated through a controversial excise policy that favored select companies and distributors.

The CID’s investigation highlights the alleged role of Jagan’s former IT advisor, Kesireddy Rajashekar Reddy, as the architect of a vast money laundering network involving over 30 shell companies. The probe claims that illicit funds were funneled to top YSRCP leaders including Rajya Sabha MP V. Vijayasai Reddy and Lok Sabha MP P.V. Midhun Reddy, who are believed to have ultimately routed money back to Jagan.

Authorities further allege that Rajashekar Reddy laundered ₹250–₹300 crore during the 2024 elections, working in coordination with former MLA Chevireddy Bhaskar Reddy. The proceeds, reportedly received in cash and gold bullion, were allegedly invested in land, gold, and luxury assets across Dubai and Africa. The CID has so far seized assets worth approximately ₹60 crore linked to the transactions.

The investigation also accuses Vijayasai Reddy and Midhun Reddy of tampering with the state’s excise policy by dismantling the automated Order for Supply (OFS) system and installing loyalists within the Andhra Pradesh State Beverages Corporation Limited (APSBCL) to manipulate liquor distribution.

In response, the YSRCP has strongly condemned the investigation, labeling it a politically motivated attempt by the Telugu Desam Party (TDP) government under Chief Minister N. Chandrababu Naidu to target opposition leaders. The arrest of MP Midhun Reddy over the weekend sparked sharp criticism from YSRCP, with party leaders alleging that statements used as evidence were obtained under duress.

YSRCP general secretary Sajjala Ramakrishna Reddy dismissed the CID’s claims as part of a larger conspiracy. “This is a clear case of political vendetta aimed at silencing voices that challenge the establishment. The chargesheet is based on forced confessions and human rights violations,” he alleged.

Ramakrishna Reddy also defended Jagan’s liquor policy, asserting that it aimed to regulate pricing and eliminate private profiteering by bringing alcohol sales under state control. In contrast, he claimed that the current TDP government had reverted to a privatized model, widening the scope for corruption.

As the Vijayawada court prepares to examine the chargesheet, the unfolding case is likely to become a flashpoint in Andhra Pradesh’s political landscape, with far-reaching implications for both the YSRCP and TDP in the run-up to future elections.