The CID described Midhun Reddy as the “core conspirator” from the outset of the scam. He allegedly played a key role in policy orchestration and coordination with co-accused to secure kickbacks from liquor suppliers.
Published Jul 20, 2025 | 7:05 PM ⚊ Updated Jul 20, 2025 | 7:05 PM
Rajampet MP PV Midhun Reddy
Synopsis: Rajampet YSRCP MP PV Midhun Reddy was remanded to judicial custody till 1 August by a Vijayawada special court in connection with the ₹3,200 crore liquor scam. The SIT, under the Andhra Pradesh CID, currently probing the scam, filed a preliminary chargesheet on Saturday describing the MP as a “core conspirator” in the scam, which allegedly caused substantial losses to the state exchequer.
The Special Court for SPE and ACB Cases in Vijayawada on Sunday, 20 July, remanded Yuvajana Sramika Rythu Congress Party (YSRCP) leader and Rajampet MP PV Midhun Reddy to judicial custody till 1 August.
The ruling follows his arrest on Saturday by the Special Investigation Team (SIT) of the Andhra Pradesh Crime Investigation Department (CID), which is probing the ₹3,200 crore liquor scam that allegedly took place in Andhra Pradesh during the previous YSRCP government.
The SIT produced Midhun Reddy – listed as A4 – before the court a day after it filed its first preliminary charge sheet on Saturday, forming the basis for the arrest.
In its remand report, the CID stated that Reddy’s arrest was necessitated by his lack of cooperation with the investigation, noting that he was evasive during questioning on 19 April.
It said his responses were misleading and appeared to be a deliberate attempt to obstruct the probe. The SIT categorically denied the allegations he had made, citing documentary evidence to the contrary.
The report further noted that Reddy denied knowledge of the companies involved and the payments made to PLR Projects Pvt. Ltd., and failed to provide any plausible explanation for the preferential treatment extended to certain distilleries and brands.
His conduct, the CID said, indicated an effort to suppress material facts and shield other beneficiaries of the scam.
The CID described Midhun Reddy as the “core conspirator” from the outset of the scam. He allegedly played a key role in policy orchestration and coordination with co-accused to secure kickbacks from liquor suppliers.
The remand report accused him of influencing public servant A3 (Satya Prasad) with the promise of Non-SCS (Non-State Civil Service) IAS promotion to facilitate the scam and ensuring his appointment as Special Officer.
The MP is said to have directly influenced APSBC officials and participated in planning meetings that led to major financial loss to the state.
He allegedly routed ₹5 crore as kickbacks through entities including SPY Agro, Sanhoc Labs, and Dcart Logistics. The funds were ultimately credited to PLR Projects Pvt Ltd, a company closely associated with his family.
He had declared a ₹47.74 crore liability to PLR Projects, further confirming financial ties.
One of the routing entities, Dcart Logistics, lists as director one of the accused in the case – who was the personal assistant of A1, Raj Kasireddy.
The report also alleged that the Rajampet MP had personal and family interests in Shiva Shakthi Dairy Pvt Ltd, where his mother and sister serve as directors, further reinforcing his financial and operational links to PLR Projects and the scam.
Call Data Records and location tracking from 2023 indicated frequent meetings with other accused persons in Hyderabad, Vijayawada, and Tadepalli, including at cash-handling hubs established for the scam.
Furthermore, the SIT found that front and shell companies were used to launder kickbacks and the proceeds of the scam were allegedly used to fund the 2024 general election campaigns in Andhra Pradesh.
The alleged scam revolves around corruption in the Andhra Pradesh State Beverages Corporation Limited (APSBCL) during the tenure of the YSRCP government.
The SIT, constituted by the present TDP-led NDA government, has alleged that the liquor policy introduced in 2019 was used to facilitate money laundering.
The FIR, registered by the CID on 19 April 2025, pertained to large-scale irregularities in the implementation of the state’s excise policy.
The case was registered by the Crime Investigation Department (CID) under Crime No. 21/2024, invoking Sections 409 (criminal breach of trust), 420 (cheating and dishonesty), and 120(B) (criminal conspiracy) of the Indian Penal Code (IPC), along with provisions of the Prevention of Corruption Act, 1988 – Sections 7, 7A, 8 (public servants taking or demanding bribes), and Sections 13(1)(b) and 13(2) (criminal misconduct by public servants) – as well as Section 47 of the Bharatiya Nagarik Suraksha Sanhita (BNSS) (arrest without warrant).
It alleged that the policy was misused to derive pecuniary benefit by securing illegal kickbacks from liquor distilleries and suppliers, causing massive losses to the public exchequer.
According to sources, the SIT has accused liquor manufacturers and distilleries of paying kickbacks in return for favourable treatment, resulting in substantial losses to the state.
The investigation has pointed to a nexus involving YSRCP leaders, government officials, and private firms. The SIT alleges that this network manipulated policy to benefit specific distilleries.
Kasireddy Rajasekhar Reddy, former IT advisor to then Chief Minister YS Jagan Mohan Reddy, has been named as the alleged “kingpin” of the scam. Midhun Reddy is accused of managing financial operations and enabling 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.
An earlier plea before the Andhra Pradesh High Court had also been dismissed, prompting the SIT to issue a lookout circular to prevent him from leaving the country.
So far, 12 individuals, including senior YSRCP leaders and former officials, have been arrested in connection with the case.
(Edited by Dese Gowda)
