YSRCP MP Midhun Reddy Sent to Judicial Custody in ₹3,500 Crore Liquor Scam Case

After SC Rejects Bail, SIT Arrests Senior MP; Court Remands Him to Custody Until August 1 Amid Ongoing Corruption Probe

Vijayawada : YSR Congress Party (YSRCP) Member of Parliament P. V. Midhun Reddy was on Sunday remanded to judicial custody till August 1 in connection with the multi-crore liquor scam case in Andhra Pradesh. A city court passed the order after the Special Investigation Team (SIT), which had arrested him the previous night, presented him before the Anti-Corruption Bureau (ACB) court.

Midhun Reddy, who represents the Rajampet constituency and is the YSRCP’s floor leader in the Lok Sabha, is the fourth accused in the liquor policy scam case. He will be shifted to the Rajahmundry Central Jail.

The SIT arrested Reddy after a seven-hour interrogation at their office in Vijayawada. The arrest came just a day after the Supreme Court rejected his anticipatory bail petition. Earlier, the Andhra Pradesh High Court had also dismissed his plea.

The senior MP is accused of playing a crucial role in the formulation and manipulation of the state’s liquor policy between 2019 and 2024, a period during which the alleged scam took shape. According to the SIT, kickbacks from distillery companies were rerouted through shell companies linked to individuals close to the ruling establishment at the time.

The SIT also claims that irregularities in the policy led to massive financial misappropriation, with approximately ₹3,500 crore siphoned off over a five-year period. So far, around ₹62 crore has been recovered, and 268 witnesses have been examined during the course of the investigation.

The charges against Midhun Reddy are serious. The SIT informed the court that the case has been registered under several sections of the Indian Penal Code, including 409 (criminal breach of trust), 420 (cheating), and 120B (criminal conspiracy), read with Sections 34 and 37. Additionally, provisions under the Prevention of Corruption Act — Sections 7, 7A, 8, 13(1)(B), and 13(2) — have also been invoked.

During the hearing, Midhun Reddy’s lawyer, senior counsel Nagarjuna Reddy, opposed the plea for judicial custody. He argued that the MP had served three terms in Parliament, had acted as a panel speaker, and was a public servant enjoying Y-category security. He also informed the court that the Lok Sabha Speaker had been duly notified of the arrest.

However, the SIT counsel argued that Reddy’s custodial remand was essential, given his pivotal role in the scam. The counsel emphasized that there was strong evidence tracing the money trail back to the MP, warranting further investigation under judicial supervision.

Notably, the SIT filed a 300-page preliminary chargesheet on the same day as the arrest, submitting it to the ACB court along with forensic laboratory reports that reportedly support the financial allegations.

The liquor scam case first came to light in 2023 following a complaint from an Excise Department official. Initially handled by the Crime Investigation Department (CID), the case was later transferred to an SIT by the newly elected TDP-led NDA government. The SIT is headed by NTR District Commissioner of Police SV Rajashekhar Babu.

So far, 11 individuals have been arrested in connection with the scam. High-profile names among them include Raj Kesireddy (advisor to then CM Y. S. Jagan Mohan Reddy), K. Dhanunjaya Reddy (retired IAS officer), Krishna Mohan Reddy (former OSD), and Chevireddy Bhaskar Reddy (former MLA).

The SIT alleges that the YSR Congress Party leadership actively pushed a new liquor policy that favored specific distilleries, created new brands, and facilitated large-scale kickbacks, resulting in significant losses to the state exchequer.

The case is now unfolding as one of the biggest political and financial scandals in Andhra Pradesh in recent years, and further arrests and revelations are expected as the investigation continues.