Hyderabad, March 6: The Enforcement Directorate (ED) has seized assets worth ₹441.63 crore linked to the Andhra Pradesh liquor scam involving Keshireddy Rajasekhar Reddy, his family members, and others. The properties, which include bank balances, fixed deposits, land parcels, and other assets, were attached under the Prevention of Money Laundering Act (PMLA), 2002.
The investigation was initiated based on a complaint from the Principal Secretary of the Andhra Pradesh Government, which alleged a loss of ₹4,000 crore to the state treasury. The ED revealed that physical cash kickbacks were collected and stored at various locations in Hyderabad, later distributed by designated cash handlers of the syndicate.
So far, the ED has traced a money trail of ₹1,048.45 crore, allegedly paid as bribes to several distilleries in cash, gold, and other means. The agency noted that the liquor syndicate gained illegal profits through control and operation of certain distilleries and transportation of liquor.
The investigation has also uncovered that the proceeds of crime were used to purchase real estate and for personal gains of syndicate members. A significant portion of the illicit earnings was reportedly hidden or misappropriated. The ED stated that further investigations are ongoing.
Before 2019, the liquor trade in Andhra Pradesh was regulated through a transparent and automated software system, ensuring end-to-end digital tracking. However, after the 2019 assembly elections, the newly formed state government monopolized retail liquor outlets through the Andhra Pradesh State Beverages Corporation Limited (APSBCL).
Under an alleged criminal conspiracy, the automated system was deliberately shut down, replaced by a manual system that granted APSBCL officials the authority to issue supply orders. The ED accused the manual system of being misused to discriminate against existing liquor brands, while favored brands received special and irregular allocations in exchange for bribes.
The investigation revealed that distilleries were allegedly coerced into paying illegal bribes of 15% to 20% of the basic price for each case to obtain supply order approvals. Manufacturers refusing to comply faced pressure, including withheld payments and rejected supply orders.
The ED noted that discussions regarding the demand and recovery of bribes were conducted via encrypted VoIP calls and applications like Signal to conceal the identities and roles of key individuals involved. The agency stated that Keshireddy Rajasekhar Reddy, along with other members of the liquor syndicate, orchestrated a massive scam in the liquor procurement and distribution system in Andhra Pradesh.
According to the ED, the scam involved control and manipulation of the APSBCL procurement process, resulting in an estimated loss of around ₹3,500 crore to the state treasury. The proceeds from the scam were allegedly laundered and distributed among syndicate members for personal gain.
The ED has alleged that Keshireddy Rajasekhar Reddy, along with associates, received bribes amounting to approximately ₹3,500 crore.
“Disclaimer: This news is directly from the agency, and our team has made no edits.”
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
