YSR Congress Party MP P V Midhun Reddy will on Saturday appear before the Andhra Pradesh CID’s Special Investigation Team (SIT) probing the alleged liquor scam worth Rs 3,500 crore. Reddy is likely to be arrested in connection with the case.
The SIT had earlier asked Reddy to appear before it to record his statement in connection with the alleged scam, but he had avoided doing so. The MP, however, decided to appear before the SIT after the Supreme Court dismissed his anticipatory bail application on Friday.
The three-time MP from Rajampet had filed a special leave petition challenging the Andhra Pradesh High Court’s July 15 rejection of his anticipatory bail in the case allegedly involving the State Beverages Corporation. After the high court dismissed his anticipatory bail plea, the SIT issued a look-out circular against Reddy to prevent the MP from leaving the country.
According to sources in the Criminal Investigation Department (CID), Reddy was not cooperating with the investigation and dodged summons several times. In the First Information Report (FIR), the SIT has alleged that Reddy was the leader of a group that pushed a policy favouring new alcohol companies and distilleries in return for kickbacks.
The “kingpin” of the scam, the SIT alleged, was Kasireddy Rajasekhar Reddy alias Raj Kasireddy, who was IT Advisor to former chief minister and YSR Congress Party leader Y S Jagan Mohan Reddy. Responding to the allegations, the YSRCP had earlier accused the Telugu Desam Party (TDP) government of a witch hunt, and said the SIT had found no material evidence against the accused.
The alleged liquor scam
Ahead of the 2019 Andhra Pradesh Assembly election, the YSRCP had promised a phased ban on liquor and to discourage alcohol consumption by increasing its price. On assuming power, the YSRCP government formulated a new liquor policy that came into effect at the end of 2019.
Instead of facilitating an eventual ban on liquor in the state, the policy encouraged a money-laundering racket that flourished until 2024, as per the SIT set up by the TDP government under N Chandrababu Naidu.
