SIT takes Raj Kesi Reddy into custody in liquor scam case

Despite receiving notices from the SIT four times, Raj Kesi Reddy had failed to appear before investigators till now.
The Special Investigation Team (SIT)  took Raj Kesi Reddy (Rajasekhar Reddy Kesi), into custody on Monday evening. He was prime accused in the AP liquor scam case.
The Special Investigation Team (SIT) took Raj Kesi Reddy (Rajasekhar Reddy Kesi), into custody on Monday evening. He was prime accused in the AP liquor scam case. (Photo | Express)
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3 min read

VIJAYAWADA: The Special Investigation Team (SIT) took Raj Kesi Reddy (Rajasekhar Reddy Kesi), into custody on Monday evening. He was prime accused in the AP liquor scam case.

He was apprehended at Shamshabad airport upon arrival from Goa on an Indigo flight, having travelled to Goa from Dubai. According to sources, SIT officials took him into custody outside the airport terminal amid suspicions that he was attempting to flee the country.

Though Kesi Reddy reportedly told the police that he would appear for questioning on Tuesday, the SIT chose to detain him immediately, citing doubts about his compliance. He is being shifted to Vijayawada for further investigation.

Earlier in the day, Kesi Reddy had released an audio message announcing his intention to appear before the SIT on Tuesday between 11 am and 12 noon. He had also filed for anticipatory bail in the High Court, which was heard on Monday. However, the court did not grant interim protection, adjourning the matter for a week.

In a twist, sources revealed that Kesi Reddy allegedly tried to escape under the alias Rajasekhar Reddy using a fake ID, fearing arrest in Goa. His travel to Hyderabad was reportedly part of a plan to flee abroad, which was thwarted by the SIT’s timely action.

Kesi Reddy had earlier reacted to statements made by former MP Vijayasai Reddy during his SIT questioning, stating in an audio message that he would refrain from public comments as his bail plea was pending.

Despite receiving notices from the SIT four times, Raj Kesi Reddy had failed to appear before investigators till now.

Raj Kesi Reddy, the prime accused in the AP liquor scam during the previous YSRCP regime, allegedly used film production as a front to launder black money. 

SIT investigating financial irregularities in Spy film production and other projs

He floated ED Entertainments and produced the pan-India film Spy, starring Nikhil Siddhartha, which was released on June 29, 2023, in five languages.

Kesi Reddy was also credited as the story writer. Despite a wide release, the film flopped at the box office. As investigations intensified post-elections, he went underground. The SIT is now probing financial irregularities in Spy, including unaccounted cash flow, inflated budgets, and potential laundering linked to other film projects.

High Court adjourns Kesi Reddy’s bail plea hearing

Meanwhile, the Andhra Pradesh High Court on Monday adjourned the hearing of an anticipatory bail petition filed by Raj Kesi Reddy to May 5. The court instructed the Crime Investigation Department (CID) to provide a detailed case and deferred the hearing by one week.

Kesi Reddy filed the petition following a case registered by CID on September 23, 2024 in the alleged liquor scam. His senior counsel, Siddharth Dave, appearing online, submitted an additional petition for interim anticipatory bail and requested an urgent hearing.

Justice T Mallikarjuna Rao while hearing the case, however, stated that the main petition was already adjourned and directed the counsel to raise the interim bail plea during Tuesday’s court session.

In a related matter, Kesi Reddy’s parents, Kesi Reddy Upendar Reddy and Subhashini, filed a plea in the High Court seeking a direction to the Special Investigation Team (SIT) that they be questioned at their Hyderabad residence or a neutral venue in the presence of their advocate, as per Bharatiya Nagarik Suraksha Sanhita (BNSS) Section 179.

They alleged verbal abuse by SIT officials during questioning in Vijayawada. Their counsel, Dushyanth Reddy, said that both petitioners, aged over 60, should be questioned at home as per BNSS provisions.

Public Prosecutor M Lakshminarayana, representing the state, agreed to the petitioners’s request. However, he denied the allegations of a verbal abuse by SIT officials during the questioning.

Justice N Harinath, hearing the parents’ petition, ordered the SIT to question Kesi Reddy’s parents at their residence with in presence of their advocate. The HC instructed police to avoid precipitate actions and allowed the prosecution to file a counter to the allegations.

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