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Jagan accuses TDP Government of ₹11,000 crore scam, declares 4 June as Betrayal Day

Jagan accused the coalition government of fabricating the liquor scam to divert attention from ongoing legal proceedings against TDP Chief Chandrababu Naidu, claiming it was a tactic to shield him from accountability

Published May 23, 2025 | 7:34 AM ⚊ Updated May 23, 2025 | 7:34 AM

Jagan accuses TDP Government of ₹11,000 crore scam, declares 4 June as Betrayal Day

Synopsis: Former CM and YSRCP chief YS Jagan Mohan Reddy, in a press meet, accused the NDA-led Andhra Pradesh government of large-scale corruption, economic mismanagement, and political vendetta. Citing CAG and RBI data, he criticised policies on power, liquor, Amaravati, and media. Declaring June 4 as “Betrayal Day,” he alleged growing authoritarianism under CM Chandrababu Naidu

Former Chief Minister and YSRCP president YS Jagan Mohan Reddy held a press conference on 22 May at his Tadepalli office, launching a scathing attack on the NDA-led coalition government in Andhra Pradesh.

Backed by a detailed presentation citing data from the Comptroller and Auditor General (CAG) and the Reserve Bank of India (RBI), Jagan alleged large-scale corruption, economic mismanagement, and political vendetta by the current administration.

Touching on issues ranging from power purchase agreements and liquor tenders to Amaravati funding and media bias, he accused Chief Minister N Chandrababu Naidu of orchestrating financial irregularities and suppressing dissent. He also declared that 4 June would be observed as “Betrayal Day” to highlight what he described as a series of policy failures and targeted actions under the present regime.

Jagan’s address aimed to paint a picture of declining governance and rising authoritarianism in the state since the change in leadership.

‘Economic downfall’

“At the time of the state’s bifurcation, we had liabilities amounting to ₹1.40 Lakh Crore. During their first regime, Chandrababu Naidu increased it by 22.63 percent to ₹3.90 Lakh Crore. Subsequently, we only increased it by 13.57 percent to ₹7.21 Lakh Crore,” Jagan explained. “During FY 2024-25, the TDP regime borrowed ₹1.37 Lakh Crore, 41 percent of the ₹3.32 Lakh Crore we borrowed in five years,” he continued.

“Our government had to overcome the gargantuan challenge of Covid19. However, one could say we did well despite that. However, if you look at CAG’s report, you can’t see any development in the last year,” he said, referring to the TDP regime.

He further explained that the state witnessed a mere 3.08 percent growth during FY 2025, when comparing receipts and expenditure between 2024 and 2025. “If you look at the national revenue, there was a 13.76 percent growth in both. This shows that Andhra Pradesh did not keep up with the nation. This shows that the state’s revenue is not going to the exchequer but the TDP’s pockets,” he alleged.

He also noted that at ₹81,597 Crore against 2024’s ₹62,720, the state’s debt has increased by 30.10 percent. “If you look at the capital expenditure, we spent ₹23,330 Crore while the NDA only spent ₹19,177 Crore, a fall of 17.80 percent,” he explained.

He backed these allegations based on reports from the Comptroller Auditor General and RBI, detailed in his presentation.

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4 June as Betrayal Day

Jagan also criticised the current coalition government, accusing it of using the liquor scam as a smokescreen to shield TDP Chief N Chandrababu Naidu from existing legal proceedings. He claimed that the charges in the newly surfaced liquor case are fabricated and strategically designed to dilute the ongoing investigation in which Chandrababu is out on bail.

He alleged that the government has been arresting lower-level employees and officials unconnected to the case to undermine the original allegations. Citing individuals like Vasudev Reddy and Raj Kasireddy, Jagan suggested that dissenting voices and those resisting government pressure are being implicated without cause.

He also argued that documentary evidence exists against Chandrababu regarding tender manipulation and irregular liquor shop allotments, while the present administration is misusing confessions and statements to divert attention. He further announced that 4 June would be observed as “Betrayal Day” to highlight what he described as the coalition’s failures.

He also alleged that Naidu’s previous administration engaged in financial mismanagement and corrupt practices, particularly in liquor distribution, energy contracts, and infrastructure projects. He claimed that Naidu favoured select private distilleries, waived privilege fees, and manipulated liquor tender processes, leading to significant losses to the state exchequer.

Jagan contrasted this with his own tenure, stating that his government increased taxes on liquor and improved transparency. He criticised current developments, citing the circulation of obscure brands sold above MRP and alleged a syndicate-driven approach in the present liquor trade. Addressing broader governance issues, Jagan accused Naidu of borrowing heavily to fund the Amaravati project under inflated tenders, with alleged kickbacks involved.

He pointed to irregularities such as signing high-priced power purchase agreements and issuing NMDC bonds through what he called unconstitutional means. Jagan also criticised the alleged distribution of state lands to favoured companies at below-market rates, a rise in power tariffs, and unchecked sand mining. He concluded by asserting that the state is facing an “undeclared emergency,” with arrests of high-ranking police officers and suppression of dissent, while claiming that CAG and financial reports validate his administration’s superior economic performance.

Scams and Yellow Media

Jagan alleged a significant scam amounting to ₹11,000 crore during the tenure of TDP leader N. Chandrababu Naidu, centred around irregularities in power purchase agreements (PPAs).

According to Jagan, the previous government signed long-term PPAs at a fixed rate of ₹4.60 per unit for a duration of 25 years, a move he claims resulted in excessive financial burden on the state. He characterised these contracts as inflated and non-transparent, suggesting they were structured to benefit select private entities.

Jagan further alleged that the agreements lacked due diligence and bypassed competitive bidding processes, leading to an overpayment that could have been avoided. In addition, he criticised the issuance of NMDC bonds, claiming that ₹9,000 crore was raised through unconstitutional means, allowing private players access to the Consolidated Fund of the state.

He also took the opportunity to state that the YSRCP was at war not just with the NDA regime but also with the ‘Yellow Media.’ Calling outlets like Eenadu and TV5 biased, he took strong exception to their “false reportage.”

(Edited by Ananya Rao)

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