YSRCP MP Midhun Reddy Arrested in Multi-Crore Andhra Liquor Scam

SIT holds Rajampet MP after seven-hour questioning; Rs 62 crore seized, more chargesheets expected

YSR Congress Party (YSRCP) Member of Parliament P. V. Midhun Reddy was arrested on Saturday by the Special Investigation Team (SIT) in connection with the multi-crore liquor scam that allegedly took place during the previous YSRCP government in Andhra Pradesh.

The arrest came after nearly seven hours of interrogation at the SIT office, where officials later informed Reddy’s family that he had been taken into custody. Reddy, a Lok Sabha MP from the Rajampet constituency and the floor leader of YSRCP in the House, has been named as the fourth accused in the case, which was registered last year after the Telugu Desam Party (TDP)-led NDA assumed power in the state.

The Supreme Court had dismissed his anticipatory bail plea a day prior, following a similar rejection by the Andhra Pradesh High Court earlier. His legal setbacks paved the way for his arrest.

According to investigators, Reddy allegedly played a central role in formulating the excise policy and is accused of diverting bribe money through shell companies. The SIT claims to have unearthed widespread irregularities and financial misconduct in the liquor policy implemented between 2019 and 2024.

The arrest coincided with the SIT’s filing of a preliminary 300-page chargesheet in the Anti-Corruption Bureau (ACB) court. The document includes forensic reports and lists Rs 62 crore in seized assets. The SIT has so far examined 268 witnesses in the case and stated that another chargesheet will be filed within 20 days, citing that the investigation is currently at a critical juncture.

The probe into the liquor scam was initially launched by the Crime Investigation Department (CID) following a complaint from an Excise Department official. After the change in government, the TDP-led administration established an SIT, led by NTR District Police Commissioner SV Rajashekhar Babu, to investigate the matter further.

Investigations suggest that nearly Rs 3,500 crore was siphoned off through an elaborate kickback network during the YSRCP regime. Allegations include encouraging a new liquor policy, introducing private brands, and receiving illegal payments from distilleries, resulting in substantial losses to the state exchequer.

Several key figures have already been arrested in the case, including Raj Kesireddy (advisor to then CM Y. S. Jagan Mohan Reddy), retired IAS officer K. Dhanunjaya Reddy, former OSD Krishna Mohan Reddy, and ex-MLA Chevireddy Bhaskar Reddy.