VIJAYAWADA: The YSRCP has fiercely criticised the TDP-led coalition government for arresting Rajampet MP PV Mithun Reddy in the liquor scam case. A chargesheet filed by Andhra Pradesh police in connection with the scam has mentioned former chief minister YS Jagan Mohan Reddy as the recipient of kickbacks averaging Rs 50-60 crore per month; the court is yet to take cognizance of the chargesheet.
YSRCP president YS Jagan Mohan Reddy denounced the arrest as an illegal act rooted in political vendetta, designed to silence opposition voices and obscure the ruling party’s own ‘scams and governance shortcomings’.
Jagan claimed that Mithun Reddy, a three-time Rajampet MP, was falsely implicated in the case through coerced confessions extracted under duress, threats, and bribes.
He dismissed the Special Investigation Team’s (SIT) assertion of a Rs 3,200 crore liquor scam during the YSRCP regime (2019-24) as a fabricated narrative crafted for media sensationalism.
Jagan alleged that the TDP-led NDA government had revived corrupt practices like belt shops and permit rooms — previously shut down by YSRCP to curb illegal sales — while weakening regulatory enforcement and reintroducing backdoor transactions. This, he said, reversed the transparent government shop system set up in 2019.
“Naidu is misusing State agencies, and a section of the media to settle political scores. Ironically, Naidu himself is currently out on bail in multiple corruption cases, including a liquor scam that occurred during his previous tenure 2014-19. During that time, private liquor syndicates thrived, and corruption was institutionalised,” he criticised.
Jagan asserted that after coming to power, Naidu stalled investigations into those serious corruption cases against him, and his close associates. To divert attention and escape accountability, Naidu had conspired to fabricate a politically motivated liquor case targeting YSRCP leaders, he alleged.
Adding to the chorus, YSRCP State coordinator Sajjala Ramakrishna Reddy, speaking outside the ACB court in Vijayawada on Sunday, labelled the arrests as harassment.
He challenged Naidu to seek a Central probe into liquor scams during both their tenures, asserting that the YSRCP regime regulated sales through State-run shops, cutting beer orders by 40% and liquor by 50%, thus curbing distillery profits and bribery.
Sajjala dismissed the scam’s fluctuating figures—ranging from Rs 50,000 crore to Rs 3,000 crore—as proof of its falsity, accusing the government and ‘yellow media’ of concocting a scandal with deleted data.
Both Jagan and Sajjala vowed legal action, and to fight back, drawing on grassroots support, amid escalating political tension in the State.
Other YSRCP leaders also denounced the arrest of Mithun Reddy.
The 305-page chargesheet filed on Saturday, however, stopped short of naming Jagan as accused.
Meanwhile, the chargesheet claims, "The collected amounts were eventually handed over to Kesireddy Rajasekhar Reddy(A-1)".
"Rajasekhar Reddy would then pass the money to Vijay Sai Reddy (A-5), Mithun Reddy (A-4), Balaji (A-33) who would transfer it to former Chief Minister Y S Jagan Mohan Reddy.
On an average, Rs 50-60 crore was collected every month (during the 2019-24 YSRCP regime)," the charge sheet said, adding that it was corroborated by a witness.
The chargesheet alleged that Rajasekhar Reddy, "the mastermind and co-conspirator" behind the entire Rs 3,500 crore liquor scam, had influenced excise policy manipulation besides being instrumental in replacing automated OFS (order for supply) with manual process; to have planted loyalists in APSBCL (Andhra Pradesh State Beverages Corporation Limited).
He allegedly created shell distilleries and handed over "kickbacks" to Jagan through another accused Balaji Govindappa, the chargesheet further alleged.
Rajasekhar Reddy routed as much as Rs 250-Rs 300 crore cash for elections on behalf of YSRCP Party in tandem with accused Chevireddy Bhaskar Reddy (former MLA) and was also responsible for laundering funds through over 30 shell firms.
The amount was invested to acquire land, gold, luxury assets in Dubai and Africa, the charge sheet alleged.
The police alleged that the key accused brought out the new liquor policy during the previous YSRCP regime with an underlying intent of having full control over the supply and sale of liquor, thereby to achieve their broader goal of earning commissions/kickbacks between 2019 till 2024.
"The accused planned the change in excise policy and also its modalities, to ensure that they would receive large kickbacks, major portion of such kickbacks was received in cash, gold bullion etc," the charge sheet claimed.
During investigation it was revealed that the accused deliberately withheld OFS approvals to brands/distilleries who did not yield to the kickback demands.
The Special Investigation Team (SIT) probing the alleged liquor scam has arrested YSRCP Lok Sabha member PV Midhun Reddy on Saturday, after grilling him for several hours.
In May, the Enforcement Directorate also filed a money laundering case to investigate the alleged liquor scam.
The federal probe agency has filed an Enforcement Case Information Report (ECIR) under sections of the Prevention of Money Laundering Act (PMLA) to probe alleged irregularities in the sale of liquor in the state.
From the investigation done so far, it was revealed that during the second half of 2019, a meeting of the owners of the distilleries was held by Sajjala Sridhar Reddy (A- 6) at Hotel Park Hyatt, Hyderabad, the charge sheet claimed.
The distilleries were told to co-operate with the syndicate, it added.
"During the meeting, the owners were intimidated that if they do not accede to their proposals and no orders will be issued to them.
Such intimidation for kickbacks by threatening them with no issuances of OFS and thereby receiving kickbacks amounts to extortion," the chargesheet alleged.
Under the threat of loss of business, several distilleries agreed to pay kickbacks at the rate of 12 per cent.
Soon, the percentage was increased to 20 per cent of the base price, it further alleged.
(With inputs from PTI)
