ED summons former MP Vijay Sai Reddy in AP liquor 'scam' probe case

Hyderabad, Jan 17 (PTI) The Enforcement Directorate (ED) has summoned former MP Vijayasai Reddy for questioning in a money-laundering case linked to a Rs 3,500-crore liquor "scam" in Andhra Pradesh that allegedly took place during the previous YSRCP regime in the southern state, officials said.

The 68-year-old YSRCP leader has been asked to depose at the ED's zonal office here on January 22. His statement will be recorded under the provisions of the Prevention of Money Laundering Act (PMLA), the officials said.

Vijayasai Reddy is likely to be questioned about the liquor policy that was implemented in Andhra Pradesh between 2019 and 2024, they added.

He has been named as an accused in the FIR filed by the Andhra Pradesh Special Investigation Team (SIT) and it has been alleged that illicit funds of the trade were passed through him to former chief minister and YSRCP leader Y S Jagan Mohan Reddy.

The former chief minister has claimed that the case is a result of a "political conspiracy".

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

Police have so far filed three chargesheets in the case and prominent among those arrested is YSRCP's Lok Sabha MP P V Midhun Reddy.

Police have alleged in the chargesheets that Jagan Mohan Reddy was one of the recipients of kickbacks averaging Rs 50 crore to Rs 60 crore per month. The former chief minister, however, has not been named as an accused in the said prosecution complaints.

Police have also alleged that Jagan Mohan Reddy chaired a meeting in July 2019 related to the new liquor policy under which the outlets selling alcohol would be run by the Andhra Pradesh State Beverages Corporation Limited (APSBCL), a government entity.

The chargesheets also allege that the kickbacks were systematically laundered through low-profile individuals, such as office boys or employees.

"During the discussions held in the meeting on 29.07.2019 chaired by Chief Minister of Andhra Pradesh, matters relating to number of shops, hiring of shop premises, shop infrastructure, manpower transportation chargers, etc., have been finalised," police have said, quoting from a letter written by the then APSBCL managing director.

Police have claimed that Jagan Mohan Reddy also played a key role in the appointment of D Vasudeva Reddy, an Indian Railway Traffic Service (IRTS) officer and an accused in the case, as the managing director of the APSBCL, despite him being recommended for other posts by the then chief secretary and other officials.

According to the chargesheets, former bureaucrat Rajat Bhargava tried several times to alert the Chief Minister's Office about the irregularities in the APSBCL. However, his warnings fell on deaf ears. Bhargava served as the special chief secretary for excise when the alleged scam took place.

The YSRCP has said all the allegations made in the chargesheets are baseless.

Quoting from the chargesheets, police officials have claimed that a portion of the liquor kickbacks was transferred to the employees and associates of the accused as salary and it was also observed that several of such low-profile individuals were made to send the cash deposited into their accounts to other accused.

Several illegalities in modifying the excise policy in 2019 were found during the course of the investigation, police have said. PTI NES GDK RC