The ED is expected to question Vijayasai Reddy's role in the policy's implementation and related financial transactions.
Published Jan 17, 2026 | 12:55 PM ⚊ Updated Jan 17, 2026 | 12:55 PM
Vijaysai Reddy quit the YSRCP and resigned from his Rajya Sabha seat.
Synopsis: The alleged scam, estimated to involve financial irregularities exceeding ₹3,200 crore, centres on claims of manipulated liquor procurement processes, favouritism toward certain suppliers, and the collection of kickbacks.
The Enforcement Directorate (ED) has summoned former Rajya Sabha member V Vijayasai Reddy in connection with the his role in the alleged Andhra Pradesh liquor scam.
The summons, issued by the ED’s Hyderabad unit, directed Vijayasai Reddy, who was a key leader in the YSRCP, to appear before the agency on 22 January, for questioning under the Prevention of Money Laundering Act (PMLA).
The ED is expected to question Vijayasai Reddy’s role in the policy’s implementation and related financial transactions. The agency registered an Enforcement Case Information Report (ECIR) in May 2025 to investigate money laundering aspects of the case, naming 33 individuals as accused.
The development marks intensification of the probe into irregularities in the state’s liquor policy between 2019 and 2024, during the tenure of the YSRCP government led by former Chief Minister YS Jagan Mohan Reddy.
The alleged scam, estimated to involve financial irregularities exceeding ₹3,200 crore, centres on claims of manipulated liquor procurement processes, favouritism toward certain suppliers, and the collection of kickbacks.
According to official sources, the policy allegedly side-lined established brands that refused to pay bribes, while new or favoured suppliers were coerced into providing payments ranging from 15 percent to 20 percenr per case.
Funds were reportedly diverted through inflated invoices, fake vendor payments, and shell companies for purposes including election financing, personal gains, and overseas transfers.
The ED, in September 2025, made raids at 20 locations across five states, including Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, and Delhi, as part of expanding the probe. Till date, 12 arrests have been made, and evidence seized includes 74 hard drives, laptops, and over 1,000 documents.
The SIT, headed by Vijayawada Police Commissioner SV Rajasekhar Babu, has examined more than 128 witnesses and operates parallel to the ED’s money laundering investigation.
The investigation alleges that a network was established to bypass automated systems for liquor order supplies, replacing them with manual processes that facilitated discretionary allocations in exchange for bribes.
Software like C-Tel, intended for secure order issuance, was reportedly disabled in October 2019, leading to the suppression of multinational brands such as McDowell’s and Seagram’s, whose market share dropped from 53 percent to 5 percent over five years. Kickbacks were coordinated via encrypted apps and routed to political beneficiaries.
Key figures accused in the case included YSRCP MP Peddireddy Mithun Reddy, retired IAS officer K Dhanunjaya Reddy (former secretary in the Chief Minister’s Office), Jagan Mohan Reddy’s Officer on Special Duty (OSD) P Krishna Mohan Reddy, and former Andhra Pradesh State Beverages Corporation Ltd (APSBCL) Managing Director D Vasudeva Reddy.
Other imporatant names are Govindappa Balaji (full-time director of Bharathi Cements), APSBCL special officer Satya Prasad, and Sajjala Sridhar Reddy (former director of SPY Agro Industries).
Kasireddy, arrested in April 2025 after evading four prior notices, is described as a key accused (A1) in the scam. Investigative documents mention meetings at Vijayasai Reddy’s Hyderabad residence on 13 October, 2019, where the policy was allegedly discussed, involving figures like Mithun Reddy and Satya Prasad. Another meeting occurred in Jubilee Hills in December 2019.
In April 2025, the Andhra Pradesh Police’s Special Investigation Team (SIT) issued notices to Vijayasai Reddy, requiring his appearance on 18 April at their Vijayawada office. He complied and was questioned, during which he reportedly positioned himself as a whistleblower, denying direct involvement and pointing to others like Rajasekhar Reddy Kasireddy as central figures.
(Edited by Sumavarsha)
