In a dramatic development in the Andhra Pradesh liquor scam, the Special Investigation Team (SIT) seized Rs 11 crore in cash and illicit liquor stashed at Sulochana Farm Guesthouse in Kacharam, Shamshabad mandal, Rangareddy district, near Hyderabad. The cash, concealed in 12 cardboard boxes, was uncovered during raids on properties linked to the accused in a sprawling corruption case that has rocked the state.
The scam, allegedly orchestrated during the YSR Congress Party (YSRCP) regime from 2019 to 2024, involved a sophisticated kickback network that siphoned off approximately Rs 3,500 crore over five years. The SIT, led by NTR District Commissioner of Police S.V. Rajashekhar Babu, acted on a tip from Varun Purshottam, accused number 40, who confessed to hiding the cash and liquor under the direction of prime accused Kesireddy Rajashekar Reddy, former IT Adviser to then-Chief Minister Y.S. Jagan Mohan Reddy. Other accused, Chanikya and Vinay, are also under scrutiny for their roles in concealing the illicit funds.
The investigation revealed that the YSRCP government’s liquor policy enabled the scam, with new brands floated and kickbacks collected from distilleries, leading to massive financial losses for the state. The SIT alleges that Rs 50-60 crore was funneled monthly through a web of aides and shell companies, implicating high-profile figures, including YSRCP MP P.V. Midhun Reddy, who is among the 12 arrested. Other key accused include K. Dhanunjaya Reddy, Secretary in the Chief Minister’s Office; Krishna Mohan Reddy, Officer on Special Duty; Balaji Govindappa, director of Bharati Cements; former MLA Chevireddy Bhaskar Reddy; and Sajjala Sridhar Reddy.
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The probe began after a complaint from an Excise Department official, prompting the Crime Investigation Department (CID) to register a case at Mangalagiri’s CID Police Station under IPC sections 409 (criminal breach of trust), 420 (cheating), 120(B) (criminal conspiracy), and sections of the Prevention of Corruption Act, 1988.
The TDP-led NDA government, which assumed power in 2024, escalated the investigation by forming the SIT, which filed a preliminary charge sheet on July 19, 2025. The charge sheet names former Chief Minister Y.S. Jagan Mohan Reddy as a kickback recipient, though he has not been formally charged.
Sources indicate the scam’s proceeds funded lavish lifestyles and political campaigns, with cash and liquor stockpiled to evade scrutiny. The guesthouse raid, conducted on July 28, 2025, marks a significant breakthrough, exposing the scale of corruption. The SIT continues to investigate additional properties and financial trails, with more arrests expected as the probe deepens.
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