CID Probe Links Former Andhra CM Jagan Mohan Reddy to ₹3,500-Crore Liquor Scam

In a significant development in the ₹3,500-crore liquor scam, the Andhra Pradesh Crime Investigation Department (CID) has reportedly uncovered evidence suggesting that former Chief Minister and YSR Congress Party (YSRCP) chief Y S Jagan Mohan Reddy was among those who allegedly received kickbacks. Although Jagan has not been named as an accused yet, the findings form a part of the chargesheet recently submitted to a Vijayawada court, which is yet to take cognizance of the matter.

Sources familiar with the probe reveal that bribes amounting to ₹50–60 crore were allegedly generated each month between June 2019 and May 2024, facilitated by a controversial liquor policy that allegedly benefitted select companies and suppliers.

The YSRCP, in response, accused the ruling Telugu Desam Party (TDP) government led by Chief Minister N Chandrababu Naidu of using the investigation for political vendetta. Jagan Mohan Reddy and senior party leaders condemned the arrest of sitting MP and three-time parliamentarian P V Midhun Reddy on Saturday, alleging that the case was built on statements coerced through threats and intimidation.

According to CID findings, the kickbacks were allegedly routed through Kesireddy Rajashekar Reddy—Jagan's former IT advisor—who created a network of shell companies to launder the money. Funds were then allegedly distributed to senior YSRCP leaders including Rajya Sabha MP V Vijayasai Reddy and Lok Sabha MP Midhun Reddy, who, investigators claim, eventually funneled money to Jagan himself.

Vijayasai Reddy and Midhun Reddy are also accused of manipulating the state’s excise policy by replacing the automated Order for Supply (OFS) system with a manual one and positioning loyalists in the Andhra Pradesh State Beverages Corporation Limited (APSBCL) to control operations.

Further, CID sources claim that Rajashekar Reddy laundered ₹250–₹300 crore in cash during elections, allegedly in collaboration with former YSRCP MLA Chevireddy Bhaskar Reddy. These funds were reportedly used to acquire land, gold, and luxury assets in Dubai and Africa through over 30 shell companies. Authorities have so far seized approximately ₹60 crore linked to these transactions.

The CID has asserted that the liquor policy was intentionally designed to centralize control over the sale and distribution of alcohol, enabling the accused to extract massive commissions. A significant portion of the alleged kickbacks was reportedly received in cash and gold bullion.

Responding to the CID's allegations, YSRCP general secretary Sajjala Ramakrishna Reddy denounced the case as a political ploy. “This is nothing but a conspiracy to silence those who stand with the people. The chargesheet is a desperate attempt to shift focus from the TDP government’s own corruption,” he stated.

He further claimed the investigation relies heavily on forced confessions and alleged human rights violations, including torture and inducements. “Despite the lack of credible evidence, arrests are being made to serve political ends,” he added.

Ramakrishna Reddy also contrasted the liquor policies of the two leaders, stating that Jagan’s government brought the trade under state control to regulate prices and curb private profiteering, whereas Naidu's administration had allowed private players more freedom, thereby increasing the scope for corruption.

As the court prepares to examine the chargesheet, the case is expected to stir major political and legal battles in Andhra Pradesh in the months ahead.

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