Midhun Reddy was summoned by the SIT after the Supreme Court rejected his Special Leave Petition which sought anticipatory bail.
Published Jul 20, 2025 | 10:42 AM ⚊ Updated Jul 20, 2025 | 10:42 AM
YSRCP MP Midhun Reddy. (X)
Synopsis: A Special Investigation Team, probing the alleged ₹3,200-crore liquor scam in Andhra Pradesh, arrested YSRCP MP PV Midhun Reddy. The alleged scam centres around corruption in the Andhra Pradesh State Beverages Corporation Limited under the YSRCP government.
In a major development in the ongoing investigation into the alleged ₹3,200-crore liquor scam in Andhra Pradesh, the Special Investigation Team (SIT) arrested YSRCP MP PV Midhun Reddy from Rajampet on Saturday, 19 July.
The arrest came after nearly seven hours of questioning at the SIT office in Vijayawada. Officials later informed Reddy’s family members about his arrest.
The high-profile scam allegedly took place during the YSRCP’s tenure in Andhra Pradesh between 2019 and 2024. Midhun Reddy has been named Accused No. 4 (A4) in the case. He is expected to be produced before the Anti-Corruption Bureau (ACB) Special Court in Vijayawada on Sunday.
During the interrogation, SIT officials reportedly questioned 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.
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.
So far, 12 people, including senior YSRCP leaders and former officials, have been arrested in connection with the case.
(Edited by Muhammed Fazil.)
