A bombshell 305-page chargesheet filed by the Andhra Pradesh Police’s Special Investigation Team (SIT) has implicated former Chief Minister YS Jagan Mohan Reddy as a recipient of massive kickbacks in a ₹3,500 crore liquor scam that allegedly unfolded during the YSR Congress Party (YSRCP) regime from 2019 to 2024.
While Jagan is not named as an accused, the document alleges he received ₹50-60 crore monthly through a complex network of aides and shell companies.
The chargesheet, submitted to a Vijayawada court on July 20, 2025, claims the scam was orchestrated by Kesireddy Rajasekhar Reddy, a former IT advisor to Jagan, labeled the “mastermind.”
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Rajasekhar allegedly manipulated the state’s excise policy, replacing automated Order for Supply (OFS) systems with manual processes and planting loyalists in the Andhra Pradesh State Beverages Corporation Limited (APSBCL).
Distilleries were coerced into paying kickbacks—initially 12% of the base price, later raised to 20%—under threats of withheld OFS approvals, an act the chargesheet calls “extortion.”
Funds were allegedly funneled through intermediaries like Vijay Sai Reddy, PV Midhun Reddy, and Balaji Govindappa, reaching Jagan, with a witness corroborating the transactions. The SIT claims ₹250-300 crore in cash was diverted for YSRCP’s election campaigns, laundered through over 30 shell firms, and invested in land, gold, and luxury assets in Dubai and Africa. At least ₹60 crore in bribe money has been seized.
A pivotal 2019 meeting at Hyderabad’s Park Hyatt, organized by Sajjala Sridhar Reddy, reportedly pressured distillery owners to comply with the syndicate’s demands. The Enforcement Directorate (ED) has also launched a money laundering probe under the Prevention of Money Laundering Act (PMLA).
YSRCP leaders, including Jagan, have slammed the chargesheet as a “political conspiracy” by the TDP-led government under Chief Minister N Chandrababu Naidu, alleging it’s an attempt to deflect from Naidu’s own legal troubles in a prior liquor policy case. The arrest of YSRCP MP PV Midhun Reddy on July 20 after hours of questioning has further fueled accusations of vendetta.
The court is yet to take cognizance of the chargesheet, and the investigation continues as the SIT and ED dig deeper into one of Andhra Pradesh’s biggest financial scandals.
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