Published Apr 24, 2026 | 6:08 PM ⚊ Updated Apr 24, 2026 | 6:08 PM
The action forms part of an expanding money-laundering investigation under the Prevention of Money Laundering Act.
Synopsis: The ED carried out searches at 12 locations in Hyderabad and Tirupati on Friday as part of its probe into an alleged multi-crore Andhra Pradesh liquor scam, targeting several figures from the previous YSRCP regime, including V Vijayasai Reddy. The agency is examining suspected laundering of about ₹3,200 crore through shell firms and real estate deals. Searches reportedly led to the seizure of property papers, financial records and digital devices.
The Enforcement Directorate (ED) on Friday, 24 April, carried out searches at 12 locations across Hyderabad and Tirupati as part of its probe into the alleged multi-crore Andhra Pradesh liquor scam.
Those in the ED’s crosshairs included former Rajya Sabha member V Vijayasai Reddy and former MLA Chevireddy Bhaskar Reddy, both seen as influential during the previous YSRCP regime.
ED teams began early on Friday morning. Backed by central security forces, officers searched homes and offices linked to key aides and insiders. Others under the scanner include:
Searches reportedly led to the seizure of “incriminating evidence”, including property papers, financial records and digital devices.
Sources said funds suspected to be proceeds of crime were funnelled into real estate ventures such as “Wilderness Ranch” and “PRYDE”, often routed through shell companies.
If true, this shows a classic laundering chain: illicit funds move through layers of entities and reappear as legitimate investments.
Alleged kickbacks and coercion under excise policy
The action forms part of an expanding money-laundering investigation under the Prevention of Money Laundering Act (PMLA). At its core is the charge that the previous government’s excise policy was bent to suit a cartel, paving the way for an alleged ₹3,500-crore scam.
The alleged modus operandi—kickbacks, inflated pricing and selective approvals—shows systemic manipulation.
The ED case builds on an FIR registered earlier by the Andhra Pradesh SIT. Together, they describe a “collection mechanism” that allegedly operated behind the scenes.
Investigators said distilleries were pressured to meet certain “conditions” to secure supply orders—pay or miss out. The alleged monthly collections stood at ₹50 crore to ₹60 crore.
That money did not sit idle. Sources said it moved through layers of intermediaries before reaching influential leaders. The trail is complex but now under scrutiny.
V Vijayasai Reddy, in particular, is said to have wielded considerable clout over supply decisions. Investigators are probing his alleged links to early funding arrangements for firms such as Adan Distilleries.
Following the money trail
The ED is now examining suspected laundering of nearly ₹3,200 crore. Firms such as Eshanvi Infra Projects and Leela Distilleries are under the scanner. Investigators suspect these entities acted as conduits, channelling illicit cash into real estate deals.
The method was straightforward. Properties were allegedly bought in the names of relatives or low-profile associates. Their bank accounts were then used to park cash before it moved again, layer upon layer, to blur the trail and mask the real beneficiaries.
Officials said the latest seizures could lead to more summons, and more names may surface. The agency is expected to confront the accused with newly seized digital evidence.
