Andhra Pradesh Liquor Scam: Former CM Jagan Mohan Reddy Named as Kickback Receiver in CID Remand Report

The Crime Investigation Department (CID) in Andhra Pradesh has released a remand report stating that former Chief Minister Jagan Reddy received kickbacks from distillery companies. The report names 40 accused, including a retired IAS officer, officers of APSBCL, MPs, public representatives, and others. It alleges that the accused collected kickbacks, which were then routed to the then Chief Minister, and that the distillery companies were threatened with business exclusion if they did not comply with demands. The report also reveals that the syndicate members met to discuss kickback negotiations and decided to bypass automatic orders for supply and disguise kickbacks through inflated transactions with bullion merchants and shell companies.

The Crime Investigation Department (CID) in Andhra Pradesh has released a remand report that names former Chief Minister Jagan Mohan Reddy as a recipient of kickbacks from distillery companies. The report, which was submitted to a local court, details a web of corruption and political links during the previous YSR Congress Party (YSRCP) regime. The chargesheet alleges that a monthly sum of ₹50-60 crore was collected from distilleries and routed through intermediaries and shell companies, ultimately funnelled to the then Chief Minister [1].

The investigation claims that the YSRCP government engineered its excise policy to gain absolute control over liquor distribution, thereby enabling officials to extract hefty bribes. The SIT alleges that commissions began at 12% of the base price and later increased to 20%. Most of the alleged kickbacks were reportedly paid in cash, gold, or bullion [1].

Key to the operation was Raj Kesireddy (alias Kesireddy Rajasekhar Reddy), then an advisor to the Chief Minister, who was named as one of the main conspirators. The SIT claims he manipulated excise protocols, replaced automated systems with manual processes, and planted loyalists within the Andhra Pradesh State Beverages Corporation Limited (APSBCL) [1].

The SIT also arrested YSRCP MP and Lok Sabha floor leader P. V. Midhun Reddy, following a nearly seven-hour interrogation. He is accused of being a central figure in the scam, allegedly helping design the excise policy and overseeing the flow of illegal commissions from liquor companies [1].

The chargesheet was submitted just an hour before the SIT arrested Midhun Reddy, who was later remanded in judicial custody by the Vijayawada ACB Court [2]. The court designated him as Accused No. 4 in connection with the alleged Rs 3,500 crore Andhra Pradesh liquor scam.

The CID report reveals that the syndicate members met to discuss kickback negotiations and decided to bypass automatic orders for supply and disguise kickbacks through inflated transactions with bullion merchants and shell companies. The report also alleges that distilleries that refused to pay bribes faced deliberate delays or denials in obtaining mandatory supply approvals [1].

The SIT has seized ₹62 crore in illicit funds to date and examined 268 witnesses during the probe. Former Chief Minister Jagan Mohan Reddy has responded to the developments by condemning the case as a politically motivated fabrication, accusing Chief Minister N. Chandrababu Naidu of engineering the case to deflect from his own legal troubles linked to liquor policy decisions during his 2014–2019 tenure [1].

References:
[1] https://english.mathrubhumi.com/news/india/3-500-crore-liquor-scam-chargesheet-names-jagan-mohan-reddy-as-kickback-beneficiary-xbq2mlr7
[2] https://www.thehansindia.com/andhra-pradesh/ysrcp-mp-midhun-reddy-remanded-in-liquor-scam-989656