YS Jagan Mohan Reddy nominated Rs 3,500 crore as a kickback beneficiary in the liquor scam charge sheet

“The gathered zodiac signs were eventually handed over to Kesireddy Rajasekhar Reddy (A -1). Rajasekhar Reddy will then pass the money to Vijay Sai Reddy (A -5), Mithun Reddy (A -4), Balaji (A -33).” YSRCP regime), “Chargesheet, which is said to be a witness witness.

This revelation comes on the high heels of the Special Investigation Team (SIT) Arrested Rajampet MP and YSRCP Lok Sabha Leader PV Midhun Reddy On Saturday. He is accused of playing an important role in the alleged scam, which, according to the SIT, was orchestrated to fund the 2024 assembly election campaign of the party using the funds looted.

Describing Midhun Reddy as a “core conspiracy from a core conspirator to execution”, the SIT alleged that he helped designing excise duty policy and coordinating kickbacks from distillery. The arrest notice says, “The transaction mark indicated the use of front or shell companies for laundering kickback.”

The charge sheet portrays a comprehensive picture of a systematic rigged liquor policy, which is allegedly drafted with the intention of paying distillery and furnishing bribes in the ruling party’s coffeers. Investigators say the YSRCP regime manipulated excise duty, took the favor of local liquor brands in exchange for bribe, and changed automatic order systems with manual procedures to remove strict control and transparency.

“The accused planned to change the excise policy and also to ensure that they would get large kickbacks,” it says. Distillers were forced to pay up to 20 percent of the base value under the threat of allegedly kept out of supply orders – a strategy when it is equal to forcible recovery.

Most of the kickback was obtained in gold, cash or bullion, the charge sheet says.

At the center of the alleged scam, Kasredi Rajasekhar Reddy, a former advisor to Jaggan, is labeled as the “mastermind” of the operation by the SIT. They are accused of planting loyalists in Andhra Pradesh State Beverages Corporation Limited (APSBCL), setting up money through more than 30 firms, and changing funds abroad, including luxury properties in Dubai and Africa.

The Enforcement Directorate has also opened a parallel investigation under the prevention of the Money Laundering Act (PMLA), with an ECIR registered in May. Investigators say the corruption racket was triggered from the 2019 meeting in Hotel Park Hayat, Hyderabad, where distillery owners were called by YSRCP leaders and allegedly warned of rearing the kickback scheme or losing business.

Following the arrest of Midhun Reddy, YSRCP dishonestly cried by Chief Minister N Chandrababu Naidu’s government, alleging “political vengeance”. Party leaders said in a joint statement, “This is nothing but misuse of power to target opposition leaders.”

A party’s internal source claimed Midhun’s growing clout, especially after Vijayasai Reddy exiting, pose a threat to him.

“After the exit of Vijayasai Reddy, the Midhun was a person going to young workers. He was also the face of the party in Delhi. His father has been one of the biggest critics of TDP. By arresting him, TDP wants to send a message that even Jagan’s closest colleague will not be spared,” a party incense said.

TDP leaders, however, ensure that the arrest is supported by solid evidence. A senior TDP official said, “The money received through illegal means was used to fund the 2024 campaign of YSRCP.”

What is the alleged scam?

A scam of Rs 3,500 crore revolves around liquor policy The YSRCP was introduced by the government in 2019, initially deployed as a step towards phased prohibition. Instead, investigators alleged that the policy was manipulated to benefit some distillery and shell brands, which was in exchange for heavy monthly kickbacks. Popular wine brands were pushed out, and less-known people were manually favored under controlled supply system that changed the earlier automatic order for the supply (offs) process.

Distilleries were allegedly forced to pay 12 to 20 percent of their base value as a bribe in lieu of continuous trade. A 2019 meeting held at Park Hyatt in Hyderabad, in which liquor manufacturers and YSRCP leaders participated, was quoted in the charge sheet as the initial point of this forced recovery racket. Those who refused to comply with were allegedly denied the OFS orders, effectively cutting their supply chains.

The SIT claims that the collected funds, an average of 65 to 70 crore rupees monthly, were rooted through more than 30 shell companies, participating in gold, land and foreign property.