The SIT is investigating alleged large-scale irregularities in the operations of the Andhra Pradesh State Beverages Corporation. Reddy was summoned to clarify his alleged links with individuals and companies named in the case.
Published Apr 18, 2025 | 9:57 PM ⚊ Updated Apr 18, 2025 | 9:57 PM
V Vijayasai Reddy
Synopsis: Former YSRCP MP V Vijayasai Reddy appeared before a SIT on Friday in connection with an alleged ₹4,000 crore liquor scam during the previous YSRCP government’s tenure in Andhra Pradesh. He denied any involvement, stated he is cooperating with investigators, and named former government IT advisor Kasireddy Rajasekhar Reddy as the alleged mastermind.
Former Yuvajana Sramika Rythu Congress Party (YSRCP) MP V Vijayasai Reddy appeared before the Andhra Pradesh Criminal Investigation Department’s Special Investigation Team (SIT) on Friday, 18 April, in connection with an alleged ₹4,000 crore liquor scam said to have taken place during the previous YSRCP government’s tenure from 2019 to 2024.
The SIT, constituted by the Telugu Desam Party (TDP)-led National Democratic Alliance (NDA) government in February, is investigating alleged large-scale irregularities in the operations of the Andhra Pradesh State Beverages Corporation Ltd (APBCL).
Reddy was summoned to clarify his alleged links with individuals and companies named in the case. Having recently resigned from both the YSRCP and the Rajya Sabha, Reddy – a former close aide of YSRCP supremo and former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy – distanced himself from the scandal.
He reaffirmed his claim that former Information Technology Advisor to the YSRCP government, Kasireddy Rajasekhar Reddy, was the “mastermind” behind the alleged scam.
Speaking to media after his session with the SIT at the Vijayawada Police Commissioner’s office, he said he was fully cooperating with investigators and was willing to provide any relevant information.
He denied any involvement in or prior knowledge of the transactions under scrutiny.
Asked about allegations that Kasireddy had floated three companies to introduce new liquor brands, Reddy said he had no information on the matter. He also told the SIT he had no knowledge of Rajampet YSRCP MP PV Midhun Reddy’s alleged role.
The investigation focuses on serious irregularities in the production, procurement, and sale of liquor in the state.
Senior YSRCP figures are accused of setting up distilleries and directing APBCL to purchase liquor and beer from these entities, allegedly bypassing established brands and quality controls.
Liquor manufacturers are said to have paid monthly kickbacks of ₹150 to ₹200 per case, amounting to an estimated ₹80 crore per month – and roughly ₹4,000 crore over five years.
Of the ₹99,413 crore in liquor sales recorded between 2019 and 2024, only ₹615 crore (0.62 percent) was transacted digitally, raising concerns about potential money laundering and unaccounted cash flows.
The liquor policy under the previous government is alleged to have favoured obscure, low-quality local brands linked to political associates.
These brands were sold exclusively in Andhra Pradesh, eliminating outside competition and exposing consumers to inferior products. Officials estimate the state exchequer may have suffered losses of between ₹18,860 crore and ₹20,000 crore due to the alleged policy manipulation.
Investigators believe liquor companies offered bribes to secure bulk orders and preferential treatment. Substandard liquor and benami firms were allegedly used to siphon off profits.
Kasireddy Rajasekhar Reddy remains a central figure in the investigation. The SIT has conducted searches at his properties, but despite being served notices, he has not appeared for questioning.
Meanwhile, Midhun Reddy has been asked to appear before the SIT on Saturday, 19 April.
(Edited by Dese Gowda)
