After Midhun Reddy’s arrest, Jagan Mohan Reddy’s detention looms large in AP liquor scam

If the SIT issues notices to Jagan, it could mark a turning point in the state’s fight against alleged corruption or ignite a fierce debate over political vendettas.

Published Jul 21, 2025 | 3:24 PMUpdated Jul 21, 2025 | 3:24 PM

Former Chief Minister Jagan Mohan Reddy

Synopsis: The mention of Jagan Mohan Reddy in the chargesheet has set speculation mills on an overdrive over whether it is curtains down for the former chief minister. The SIT may call Jagan for questioning and then, after obtaining enough evidence of his involvement in the scam, might even arrest him.

The TDP, which appeared to be dragging its feet in going after the YSRCP leaders during the last year, has, of late, been taking decisive steps to break the morale of the Opposition party by arresting its leaders in one scam or another.

The latest is the arrest of Rajampet MP PV Midhun Reddy, son of former minister Peddireddy Ramachandra Reddy, who is a very powerful leader in Chittoor district and close to YSRCP chief YS Jagan Mohan Reddy.

The SIT, which has been constituted to probe the ₹3,200 crore liquor scam that is alleged to have taken place during the YSRCP regime, filed its first preliminary chargesheet in the case with the Anti-Corruption Bureau court on Saturday, 19 July, a day ahead of producing Midhun Reddy in the court.

In the chargesheet, the SIT reportedly mentioned Jagan’s name three times, suspecting that he may have been the final beneficiary of the proceeds of the scam – the kickbacks paid by the distilleries that were set up during the YSRCP regime.

The mention of Jagan Mohan Reddy in the chargesheet has set speculation mills on an overdrive over whether it is curtains down for the former chief minister. The SIT may call Jagan for questioning and then, after obtaining enough evidence of his involvement in the scam, might even arrest him.

Also Read: YSRCP MP Midhun Reddy remanded till 1 August

Parallels with Delhi excise scam

The process has a familiar ring. The central probe agencies also adopted a similar modus operandi before finally moving in and arresting BRS MLC Kavitha Kalvakuntla in Telangana in the Delhi liquor policy case.

There are similarities between the two cases. In the Delhi liquor case, Kavitha was summoned multiple times by the ED starting in March 2023 before her arrest on March 15, 2024. The ED’s notices were based on evidence linking her to the “South Group,” which allegedly paid ₹100 crore in kickbacks to AAP leaders.

Similarly, the SIT’s investigation in Andhra Pradesh points to a syndicate that manipulated excise policies and extorted distilleries, with Jagan allegedly at the receiving end of illicit funds.

Analysts suggest that the SIT may issue notices to Jagan in the future, requiring him to appear for questioning at the CID headquarters in Vijayawada.

While Jagan has not been named as an accused in the chargesheet, the mention of his name has fuelled speculation that the SIT is preparing to summon him for questioning, a tactic reminiscent of the ED’s methodical approach in the Delhi liquor case in respect of Kavitha and others.

The ED’s handling of Kavitha’s case provides a blueprint for what might unfold with Jagan. Kavitha was first named in a remand report in November 2022, questioned multiple times, and eventually arrested.

Also Read: What SIT report on Andhra liquor scam says

Jagan’s version

The SIT could adopt a similar strategy, issuing notices under Section 41A of the CrPC, which mandates appearance before investigators unless arrest is deemed necessary. Failure to comply could pave the way for Jagan’s arrest, though sources indicate the SIT may proceed cautiously given his stature as a former chief minister and the potential for political backlash.

In a post on X, Jagan dismissed the liquor scam allegations as a “manufactured narrative” designed to distract from governance issues, claiming that Midhun Reddy’s arrest was based on “statements extracted under pressure and third-degree torture.”

Echoing a similar opinion, Tirupati YSRCP MP Maddila Gurumoorthy told South First that the case does not stand up to legal scrutiny as the documents are the ones that had been obtained after forcing “witnesses” to sign on them against their will.

Analysts point to Jagan’s history of facing CBI and ED scrutiny in the disproportionate assets case, where he was arrested in May 2012 and later granted bail in September 2013.

Despite 11 CBI chargesheets and nine ED complaints, trials in those cases remain stalled, raising questions about whether the SIT’s probe will face similar delays.

“The SIT will need watertight evidence to justify an arrest,” said a YSRCP leader. Naming Jagan in the chargesheet is a bold move, but converting that into a formal accusation or arrest will require meticulous documentation, which will be very difficult.

As the SIT prepares to potentially summon Jagan, all eyes are on how the YSRCP chief will respond. Sources suggest that he may seek legal recourse, as he did in 2022 when the Telangana High Court granted him relief from weekly court appearances in the CBI case.

Also Read: YSRCP MP Maddila Gurumoorthy alleges persecution of 199 police officers

Tough days ahead

However, with the TDP-led government in power, Jagan may face a tougher battle to evade questioning. The Enforcement Directorate, which has also launched a parallel money laundering probe into the liquor scam, could further complicate matters by issuing its notices.

For now, Andhra Pradesh braces for a high-stakes political drama. If the SIT issues notices to Jagan, it could mark a turning point in the state’s fight against alleged corruption or ignite a fierce debate over political vendettas.

Political analyst M. Yugandhar Reddy said it would not be politically prudent for N Chandrababu Naidu to get Jagan arrested. “Already, anti-incumbency is rising because of Naidu’s failures in implementing the super six promises, barring two – social security pensions and Talliki Vandanam. In this backdrop, if notices are issued or Jagan Mohan Reddy is arrested, it might further alienate people since Jagan Mohan Reddy is sure to get sympathy,” he said.

He further said: “This apart, the SIT should have watertight evidence against Jagan Mohan Reddy, which they lack. The officials are basing it on the accounts of the witnesses to frame him. They may find it very difficult to establish a money trail that the kickbacks have gone into the pockets of Jagan Mohan Reddy. There is no evidence. Even if the TDP takes the extreme decision of arresting him, it may not be difficult for him to obtain bail as the SIT may not be able to furnish concrete evidence in support of his involvement in the scam. In such a case, public opinion would only turn in his favour. If the TDP has any sense, it would not arrest Jagan as it would be politically unwise.”

Navyandhra Intellectual Forum chairman Prof. D.A.R. Subrahmanyam felt that Chandrababu Naidu will have him arrested, no matter what. “It may not take long. Within a month, it might take place. The first sign of the possibility of Jagan Mohan Reddy’s arrest will be that of former MP V Vijayasai Reddy, who happens to be A5 in the case. Naidu seems bent on sending Jagan Mohan Reddy to jail to further solidify the narrative that Jagan Mohan Reddy is out-and-out corrupt.”

He, however, said Naidu is and always will be wary of how Prime Minister Narendra Modi will react to it. “Between Naidu and Jagan Mohan Reddy, Modi prefers the latter, though he is with Chandrababu Naidu on account of political compulsions. As Modi also cannot say no if Naidu prosecutes Jagan Mohan Reddy for obvious reasons, the Andhra Pradesh chief minister knows he should not rub Modi’s shoulder too much. Like many, Naidu is also keeping his fingers crossed over the results of the Bihar election, which would affect the future of Modi. If he loses the election, he may be standing on thin ice. As there is an unwritten rule in the party that when one is 75, one has to step down, there is always the possibility of Modi exiting after December. The first signals of what lies in store for Modi will come from the BJP president’s election and later from the Bihar elections. Naidu is watching the developments closely and would formulate his action plan vis-à-vis Jagan Mohan Reddy after January next year, as all these events would be over by December this year.”

(Edited by Majnu Babu).

 

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