Enforcement Directorate Attaches Assets in Andhra Pradesh Liquor Scam Case

The Enforcement Directorate has seized assets worth over ₹441 crore in connection with the Andhra Pradesh liquor scam, exposing alleged corruption and money laundering during the previous YSRCP government's tenure.

The Enforcement Directorate on Friday said it has attached assets worth more than Rs 441 crore of various accused involved in the Andhra Pradesh liquor 'scam' case, which allegedly took place during the previous YSRCP regime in the state.

The attached properties consist of bank balances, fixed deposits, land parcels and other immovable assets belonging to the prime accused Kessireddy Rajasekhara Reddy, his family members and related entities, other accused like Booneti Chanakya and his related entities and relatives and entities of Donthireddy Vasudeva Reddy apart from some others.

The ED said in a statement that after the 2019 assembly elections, the newly-formed state government (led by former chief minister and YSRCP leader Jagan Mohan Reddy) "monopolised" retail liquor outlets through government retail outlets (GROs) operated by the Andhra Pradesh State Beverages Corporation Limited (APSBCL).

It alleged that as part of a criminal conspiracy, the automated system was "deliberately" disabled and replaced with a manual system, thereby vesting unfettered discretionary power with APSBCL officials in issuing orders for supply (OFS).

The ED claimed that the manual OFS regime was "misused" to discriminate against established liquor brands, which were deliberately marginalised or removed from the market.

The YSRCP has always maintained that all such allegations were baseless.

The federal probe agency registered a PMLA case in September 2025 to investigate the alleged scam, taking cognisance of an Andhra Pradesh Police SIT complaint.

Details of the Liquor Scam

The ED said Kessireddy Rajasekhara Reddy, alongwith other members of the liquor syndicate, orchestrated a "multi-crore scam" for liquor procurement and distribution in Andhra Pradesh and this primarily involved controlling and manipulating the procurement process of APSBCL.

The proceeds of crime generated from this scam were laundered and distributed among the syndicate members for personal enrichment. K Rajasekhara Reddy, in collusion with Booneti Chanakya, Muppidi Avinash Reddy, Tukekula Eswar Kiran Kumar Reddy, Paila Dileep, Saif Ahmad and others collected kickbacks totaling Rs 3,500 crore, it claimed.

The agency said the accused established and/or acquired control over several distilleries, which were utilised as Special Purpose Vehicles (SPVs) to generate proceeds of crime and were granted "disproportionately" high business volumes by "abusing" political and administrative influence.

According to the ED, the alleged scam caused the state government a loss of around Rs 3,500-Rs 4,000 crore.

It alleged that preferential and irregular allocations were extended to select "favoured" brands upon receipt of "kickbacks".

"As part of the scheme, the syndicate 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," the agency said.

Manipulation of Contracts and Revenue Generation

ED's probe found that another source of "illicit" revenue generation was the "manipulation" of liquor transportation contracts awarded through a tender floated by APSBCL.

It said a centralised transportation tender was awarded to Sigma Supply Chain Solutions at rates significantly higher than the earlier depot-wise transportation costs.

The agency said that through "manipulation" of procurement and supply mechanisms, the liquor syndicate generated illegal revenues of about Rs 100 crore per month, resulting in :"wrongful" personal enrichment and causing a corresponding loss to the state exchequer.

The probe found that physical "cash kickbacks" were collected and stored at multiple locations in Hyderabad, from where designated cash handlers of the syndicate subsequently moved or distributed them.

A money trail of Rs 1,048.45 crore in bribes has been detected. According to the ED, several distilleries were compelled to pay this amount in cash, gold, etc. and also by allowing the liquor syndicate to control and operate some distilleries.