VIJAYAWADA: The Enforcement Directorate (ED) has intensified its investigation into the alleged multi-crore liquor scam during the previous YSRCP regime by issuing notices to key accused Dhanunjaya Reddy, Krishna Mohan Reddy, Ch Venkatesh Naidu and Booneti Chanakya in connection with the case.
The agency directed them to appear for questioning on Monday and bring documents including bank statements, PAN cards and details of assets owned by their family members.
The three accused appeared before the ED for interrogation in the ED office located in Hyderabad. The former OSD to ex-chief minister YS Jagan Mohan Reddy, Krishna Mohan Reddy was questioned by the agency for nearly two hours before leaving the office, while other accused continued to face questioning till 11 pm.
The case pertains to alleged irregularities in the liquor procurement and distribution system in Andhra Pradesh during the earlier YSRCP regime.
Investigating agencies suspect that the policy changes enabled a syndicate to collect massive kickbacks from distilleries in exchange for supply approvals and market access.
The ED has alleged that distilleries were forced to pay illegal commissions of around 15-20 percent per case, while certain brands were allegedly given preferential treatment.
The illegal proceeds were reportedly routed through shell companies and later diverted to accounts linked to the accused.
It may be recalled that the ED attached assets worth over Rs 441 crore belonging to key accused including Raj Kesireddy, Chanakya and Vasudeva Reddy under the Prevention of Money Laundering Act on Saturday. The attached properties include bank balances, fixed deposits and land parcels.
Investigators have traced a money trail of more than Rs 1,048 crore in kickbacks and estimate that the alleged scam may have caused a loss of nearly Rs 3,500 - Rs 4,000 crore to the state exchequer.
During the probe, the ED reportedly sought explanations regarding changes made to the state’s liquor policy and the alleged favouring of certain liquor brands during the YSRCP ruloe. The investigation agency also sought the details of companies floated by the accused in transferring the money.