VIJAYAWADA: In a major development in the alleged multi-crore liquor scam during the YSRCP regime, one of the key accused Muppidi Avinash Reddy appeared before the investigation officer of SIT at Vijayawada CP office on Thursday.
Later, he was produced in the ACB court in Vijayawada which sent him for judicial remand till February 27. The move came after the Supreme Court rejected his anticipatory bail plea on Tuesday and instructed him to appear before the investigation officer by February 26. As per remand report, investigation agency found Muppidi Avinash Reddy played a key role in the alleged irregularities and he acted in close coordination with the prime accused, Kesireddy Rajasekhar Reddy alias Raj Kesireddy and was involved in financial transactions running into several crores of rupees.
Investigators alleged that the two accused established a liquor syndicate and derived illegal financial benefits through kickbacks and commissions. The SIT described Avinash Reddy as the chief strategist of the syndicate and its financial controller. He allegedly played a key role in diverting proceeds of crime and facilitating bribe payments. The report stated that ‘orders for supply’ (OFS) were allotted to new liquor brands that paid kickbacks, while several established and popular brands were sidelined.
Officials alleged that existing automated procurement system, which ensured transparency, was scrapped and replaced with a manual process for manipulation.
“The syndicate is accused of exerting complete control over liquor sales through government-run outlets after private shops were removed from the system. Around `3,500 crore was collected as kickbacks from six distilleries. The funds were allegedly diverted for poll financing, and purchase of properties in benami names,” reads remand report.
The report stated that IIT graduates and other youth were recruited as collection agents to gather bribes. Fake invoices were allegedly generated to launder illegal funds, and collections were monitored from Hyderabad and Tadepalli. Depending on the liquor category, between `150 and `600 per case was allegedly collected.
To evade investigation Avinash Reddy reportedly fled to Thailand in 2025.