VIJAYAWADA: The Directorate of Enforcement (ED) has attached properties worth Rs 441.63 crore of three accused in the alleged multi-crore liquor scam during the previous YSRCP regime.
According to an official release on Friday, the ED attached properties of prime accused (A1) Kesireddy Rajasekhar Reddy alias Raj Kesireddy, his family and related entities, Booneti Chanakya, his family and related entities, and second accused (A2) Donthireddy Vasudeva Reddy under the Prevention of Money Laundering Act, 2002. The attached properties include bank balances, fixed deposits, land parcels and other immovable assets.
Based on the inputs from the probe conducted by the Special Investigation Team (SIT) into the liquor scam, the ED had registered a case. The probe revealed that the previous government monopolised retail liquor trade through Government Retail Outlets (GROs) operated by the Andhra Pradesh State Beverages Corporation Limited (APSBCL).
Probe reveals distilleries forced to pay 15%-20% of basic price as kickbacks
As part of a criminal conspiracy, the automated system was deliberately disabled and replaced with a manual one, thereby vesting unfettered discretionary powers with APSBCL officials in the issuance of Orders for Supply (OFS).
It found that the manual OFS system was misused to discriminate against established liquor brands, which were deliberately marginalised or removed from the market. Simultaneously, preferential and irregular allocations were extended to select “favoured” brands on receipt of kickbacks.
“As part of the scheme, the syndicate had promoted the introduction of “similar-sounding brands” (SSBs) with artificially inflated basic prices. This pricing manipulation enabled the distilleries manufacturing such brands to generate surplus margins, which were utilised to meet the illegal monetary demands of the cartel,” read the release.
The probe further revealed that distilleries were coerced into paying illegal kickbacks ranging from 15 to 20% of the basic price per case as a precondition for receiving OFS approvals. Manufacturers who refused to comply were subjected to coercive measures, including withholding legitimate payments and rejection of supply orders. “Communications relating to the demand and collection of kickbacks were carried out through encrypted VOIP calls and applications such as Signal, in order to conceal the identities and roles of key operatives, including Booneti Chanakya, Muppidi Avinash alias Sumeeth, and Mohammed Saif,” the probe revealed, pointing that Rajasekhara Reddy, along with other members of the syndicate, orchestrated a multi-crore scam.