The SIT found the cash neatly bundled and stashed in 12 cardboard boxes, which had been hidden behind rice sacks in a storeroom on the premises.
Published Jul 30, 2025 | 11:56 AM ⚊ Updated Jul 30, 2025 | 11:56 AM
SIT seizes Rs 11 crore from a farm house in Shamshabad. (Supplied)
Synopsis: In a key development in the ₹3,200–₹3,500 crore Andhra Pradesh liquor scam, the SIT seized ₹11 crore in unaccounted cash from a farmhouse near Hyderabad. The scam allegedly took place during the YSRCP’s 2019–24 rule. The SIT suspects widespread kickbacks and political involvement, with YSRCP MP PV Midhun Reddy arrested as Accused No. 4.
In a major development in the ongoing investigation into the alleged ₹3,200 – ₹3,500 crore liquor scam alleged to have taken place during the previous YSR Congress Party (YSRCP) regime in Andhra Pradesh, the Special Investigation Team (SIT) on Wednesday, 30 July, seized ₹11 crore in unaccounted cash from a farmhouse near Hyderabad.
The raids were carried out at the Sulochana Farmhouse in Kacharam, located in Shamshabad mandal of Rangareddy district. The SIT found the cash neatly bundled and stashed in 12 cardboard boxes, which had been hidden behind rice sacks in a storeroom on the premises.
The farmhouse also reportedly encompassed a nearby ground owned by Vardhaman College and included multiple rooms used for accommodation.
Sources said the searches were launched based on information provided by Varun Purushottam, listed as Accused No. 40 in the case. He is alleged to have stored the cash with the help of another individual, Vinay, acting on instructions from the key accused, Raj Kasireddy (A1) and Chanakya (A12).
Cash seized during the raid. (Supplied)
Officials are now probing the roles of both Chanakya and Vinay in concealing the cash and whether other individuals, including political figures from the YSRCP, were involved.
The SIT suspects the seized money to be part of massive kickbacks paid by liquor companies and distilleries. According to the charge sheet filed earlier by the SIT, approximately ₹1,677 crore was paid as bribes by 16 distilleries. The lead accused, Raj Kasireddy, is alleged to have floated one of the distilleries under a fictitious (benami) name.
Investigators believe that the total amount paid as kickbacks during the scam could go as high as ₹3,500 crore. The Telugu Desam Party (TDP), currently in power in Andhra Pradesh, has claimed that the scam inflicted a loss of ₹18,860 crore in potential revenue to the state exchequer.
Varun Purushottam and Chanakya were earlier detained and are currently being interrogated to uncover further details about the money trail, the key players involved, and the depth of political complicity.
The liquor scam during the YSRCP government between 2019-24 in Andhra Pradesh is a case of alleged conspiracy, criminal breach of trust, corruption, and money laundering. The case, registered under Crime No. 21/2024, involves violations of multiple sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act, 1988.
The remand report submitted by the SIT on 22 April to the Vijayawada Special Court for SPE and ACB cases stated that the case involving Kasireddy Raja Shekhar Reddy, also known as Raj Kasireddy, led to a wrongful loss of over ₹3,200 crore to the state exchequer and distilleries, while benefiting certain individuals and select distilleries through illicit gains.
The case was registered after the advent of TDP-led NDA government in the state. It was based on a complaint lodged on 20 September, 2024, by Mukesh Kumar Meena, Principal Secretary of Andhra Pradesh, based on a report— “Report on Liquor Procurement and Market Manipulation (2019-2024)” by a five-member APSBCL committee.
According to the committee’s findings, established brands such as Bagpiper Premier Whisky, McDowell’s No. 1, and Seagram’s Royal Stag were deliberately sidelined, leading to their near disappearance from the market. Available stocks of these brands in depots were not supplied to Government Retail Outlets (GROs), causing product expiry and financial losses to suppliers.
The SIT on 19 July, arrested YSRCP MP PV Midhun Reddy from Rajampet. The arrest came after nearly seven hours of questioning at the SIT office in Vijayawada. Officials later informed Reddy’s family members about his arrest. Midhun Reddy has been named Accused No. 4 (A4) in the case.
(Edited by Sumavarsha)
