The SIT, beyond detailing financial flows, has claimed that Jagan was actively involved at various stages of the scam, including initiating key policy changes that allegedly created the environment for large-scale corruption.
Published Aug 12, 2025 | 6:54 PM ⚊ Updated Aug 12, 2025 | 6:54 PM
Former Chief Minister YS Jagan Mohan Reddy
Synopsis: The SIT probing the alleged ₹3,200–3,500 crore liquor scam in Andhra Pradesh filed a second chargesheet in the ACB Court, naming three additional accused and directly linking former Chief Minister YS Jagan Mohan Reddy to policy decisions said to have enabled the scheme.
The Special Investigation Team (SIT) probing the ₹3,200–3,500 crore liquor scam, alleged to have taken place during the previous Yuvajana Sramika Rythu Congress Party (YSRCP) government between 2019 and 2024 in Andhra Pradesh, filed an additional 124-page chargesheet in the ACB Court in Vijayawada on Monday, 11 August.
The first chargesheet, a 305-page document filed in the third week of July, brought charges against seven individuals and nine companies. It alleged that then Chief Minister YS Jagan Mohan Reddy received monthly kickbacks of ₹50–60 crore, though he was not formally listed as an accused.
With the second filing, charges have now been brought against three more individuals, taking the total to 10 people and nine companies. The SIT says the latest focus is on shell companies, fake transactions, and fraudulent directors allegedly used to launder and conceal the origins of illicit funds.
It names K Dhanunjay Reddy (Secretary in the Chief Minister’s Office), Krishna Mohan Reddy (Officer on Special Duty in the CMO), and Balaji Govindappa (Director of Bharati Cements) as accused numbers A-31, A-32, and A-33 respectively.
Investigators say these officials played key roles in facilitating the movement of illicit funds, with newly uncovered evidence detailing the seizure of ₹11 crore in cash near Hyderabad and the elaborate process of routing it through multiple layers before reaching the “ultimate beneficiary”.
The SIT, beyond detailing financial flows, has claimed that Jagan was actively involved at various stages of the scam, including initiating key policy changes that allegedly created the environment for large-scale corruption.
According to the chargesheet, the groundwork was laid in June 2019, when the newly elected government decided to take over liquor retailing from private traders. On 1 October 2019, a new liquor policy came into force.
The chargesheet alleges that Jagan personally directed several operational aspects of the policy – from deciding the locations of shops to dictating infrastructure provisions, staff arrangements, and transportation charges.
The Andhra Pradesh State Beverages Corporation Ltd (APSBCL) was tasked with opening 3,500 government-run liquor outlets. On 30 July 2019, the corporation sent a note to the Chief Secretary outlining its plan, which was signed by the Chief Minister on 16 August.
The SIT stated that A-2 Vasudeva Reddy and A-3 D Satya Prasad were appointed to strategic positions in APSBCL when Ajeya Kallam was the CM’s advisor.
Vasudeva Reddy was brought in on deputation as Managing Director of APSBCL on 13 September 2019, and later became Commissioner of Distilleries and Breweries. Satya Prasad was appointed as Special Officer in APSBCL.
Both appointments, the SIT alleges, were made at Jagan’s behest. The two are accused of facilitating irregularities in procurement, payments, and licensing – irregularities that went unchecked despite being known within government circles.
The chargesheet also records the testimony of Special Chief Secretary Rajat Bhargav, who told investigators that CMO officials Dhanunjay Reddy and Krishna Mohan Reddy pressured him on matters linked to APSBCL operations.
This, according to the SIT, illustrates the extent of involvement from the Chief Minister’s inner circle.
The first chargesheet had identified A-1, Kesireddy Rajashekar Reddy, then IT Advisor to the CM, as the mastermind. He allegedly dismantled the automated “Order for Supply” system for liquor procurement and replaced it with a manual process, enabling manipulation and favouritism. Loyalists were placed in key positions to control procurement and distribution, while kickbacks were routed through a network of aides, shell firms, and overseas channels.
The SIT estimated that ₹3,500 crore was siphoned off between 2019 and 2024. Of this, around ₹250–300 crore allegedly went into YSRCP’s election campaigns, while parts of the proceeds were invested in properties and businesses in Dubai and African countries.
Among those already arrested was YSRCP MP PV Midhun Reddy, who the SIT labels a “core conspirator” involved in coordinating kickback flows. His arrest has drawn sharp criticism from the YSRCP leadership, which claims the entire investigation is politically motivated and intended to discredit the opposition ahead of future elections.
Jagan Mohan Reddy has dismissed the allegations as baseless, accusing the Telugu Desam Party-led state government of using investigative agencies to target political rivals.
“This is nothing but a conspiracy to tarnish our party and silence dissent,” he said in a recent statement.
The Enforcement Directorate (ED) has also stepped in, registering an ECIR under the Prevention of Money Laundering Act (PMLA) in May 2025. The ED is examining the alleged laundering of ₹3,200–3,500 crore linked to the scam, and has issued summons to several officials and business associates close to Jagan.
The ACB Court is yet to take cognisance of either chargesheet. Once it does, the trial process will begin, which is expected to be lengthy and politically charged, given the profile of those named and the scale of the alleged corruption.
The SIT has indicated that further supplementary chargesheets may follow as it continues to unravel the complex financial web.
(Edited by Dese Gowda)
