AP Liquor Scam: 3,500-Crore Kickbacks Laundered Through Office Boys, SIT Reveals

A supplementary chargesheet filed by the Andhra Pradesh police’s Special Investigation Team (SIT) on Monday has exposed a sophisticated money laundering operation linked to an alleged Rs 3,500-crore liquor scam. The chargesheet alleges that kickbacks were systematically funneled through low-profile individuals, such as office boys and employees of companies owned by the accused, to obscure the origins of illicit funds.

According to the chargesheet, these low-profile individuals acted as couriers and mules, depositing illicit cash into a network of bank accounts tied to the syndicate. “This pattern of cash layering and circulation demonstrates a deliberate attempt to conceal the origin of crime proceeds, constituting a classic case of structured money laundering,” SIT officials stated. Some kickbacks were disguised as salaries paid to employees and associates, who were then instructed to transfer the funds to other accused individuals, further complicating the money trail.

The SIT’s investigation has led to multiple arrests, including YSRCP Lok Sabha member PV Midhun Reddy, who was apprehended after extensive questioning. A previous 305-page chargesheet filed in July 2025 implicated former Chief Minister YS Jagan Mohan Reddy as a recipient of kickbacks averaging Rs 50-60 crore monthly during the YSRCP regime (2019-2024), though he was not formally named as an accused.

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The Enforcement Directorate (ED) also joined the probe in May 2025, filing an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act (PMLA) to investigate irregularities in liquor sales. The chargesheet further revealed that the syndicate manipulated the state’s excise policy, replacing automated systems with manual processes to facilitate kickbacks, with funds allegedly invested in assets like land, gold, and luxury properties in Dubai and Africa via over 30 shell companies.

Senior YSRCP leader and former minister Ambati Rambabu dismissed the allegations as “baseless” and “fabricated,” claiming they were politically motivated. Meanwhile, the SIT continues to uncover evidence, with recent raids recovering Rs 11 crore in cash linked to the scam.

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