While granting bail to Mithun Reddy, the ACB court directed him to surrender on 11 September.
Published Sep 06, 2025 | 6:32 PM ⚊ Updated Sep 06, 2025 | 6:32 PM
Rajampet MP PV Mithun Reddy.
Synopsis: The alleged scam centres around corruption in the Andhra Pradesh State Beverages Corporation Limited under the YSRCP government. The SIT, constituted by the current TDP-led NDA government in the state, alleges that the liquor policy introduced in 2019 was misused to facilitate money laundering.
The Anti-Corruption Bureau Special Court in Vijayawada on Saturday, 6 September, granted interim bail to YSRCP’s Rajampet MP PV Mithun Reddy, who was arrested in connection with a multi-crore liquor scam.
While granting him bail, the court directed him to surrender by 5 pm on 11 September, after the vice-presidential election on 9 September.
Reddy, who was arrested on 20 July, was arraigned as the fourth accused in the ₹3,200 liquor scam that allegedly took place when the YSRCP was in power in the state.
Though he had tried for bail earlier, the Supreme Court rejected his plea. He had been lodged in the Rajahmundry Central Prison.
The alleged scam centres around corruption in the Andhra Pradesh State Beverages Corporation Limited (APSBCL) under the YSRCP government. The SIT, constituted by the current TDP-led NDA government in the state, alleges that the liquor policy introduced in 2019 was misused to facilitate money laundering.
According to sources, the SIT has accused liquor manufacturers and distilleries of paying kickbacks in exchange for favourable treatment, resulting in massive losses to the state exchequer.
The investigation uncovered a nexus involving YSRCP leaders, government officials, and private companies. The SIT alleges that this network manipulated the policy to benefit certain distilleries.
Kasireddy Rajasekhar Reddy, a former IT advisor to the then-chief minister, YS Jagan Mohan Reddy, has been identified as the alleged “kingpin” of the scam. Midhun Reddy is accused of playing a key role in managing financial operations and facilitating policy-level favours.
Midhun Reddy was summoned by the SIT after the Supreme Court rejected his Special Leave Petition on 18 July, which sought anticipatory bail. Earlier, the Andhra Pradesh High Court had dismissed his plea, prompting the SIT to issue a lookout circular to prevent him from leaving the country.
He was arrested when he appeared before the SIT for questioning.
During the interrogation, SIT officers reportedly asked Reddy about his role in the formulation of the state’s liquor policy, the creation of shell companies to route kickbacks, his meetings with key players involved in the scam, and the flow of funds through these shell companies to the ultimate beneficiaries.
