ED intensifies AP liquor scam probe
Vijayawada: The investigation into the alleged Andhra Pradesh liquor scam gathered momentum on Monday after the Enforcement Directorate (ED) questioned key accused including Dhanujaya Reddy and Krishnamohan Reddy at its office in Hyderabad.
The accused appeared before investigators following fresh notices issued by the agency as part of its probe under the Prevention of Money Laundering Act. The case was earlier investigated by a Special Investigation Team of the Andhra Pradesh Crime Investigation Department (APCID) before being taken over by the ED.
Sources said the probe has gained significant momentum since the central agency stepped in. The ED’s inquiry forms part of a wider effort to track the flow of funds and determine who benefited from the liquor policy decisions taken during the previous administration.
While the SIT had earlier attached assets worth around Rs 11 crore, the ED has so far attached properties worth Rs 441.63 crore linked to individuals and entities allegedly involved in the scam.
Apart from Dhanujaya Reddy and Krishnamohan Reddy, others connected to the case, including Booneti Chanakya and associates of Chanakya Venkatesh Naidu, also appeared before the agency. Krishnamohan Reddy was reportedly questioned for nearly two hours. Speaking to reporters after leaving the ED office, he said he would cooperate with the investigation. “I will appear whenever the authorities call me for questioning and provide the documents they require,” he said.
Last week, the ED attached movable and immovable assets worth Rs 441.63 crore belonging to several accused and their associates. According to the agency, the properties include bank balances, fixed deposits, land parcels and other assets linked to individuals including Kessireddy Rajasekhara Reddy, Booneti Chanakya and relatives of Donthireddy Vasudeva Reddy, former Managing Director of the Andhra Pradesh State Beverages Corporation Limited (APSBCL). Investigators have alleged that a liquor syndicate manipulated procurement and distribution within APSBCL, generating illegal kickbacks estimated at around Rs 3,500 crore. The FIR registered by the APCID alleged that the state exchequer suffered losses of nearly Rs 4,000 crore.
The ED said several distilleries, including Adan Distillery Pvt Ltd, Leela Distilleries Pvt Ltd and U.V. Distilleries, were allegedly controlled through special purpose entities that received disproportionately high business volumes. Investigators also found alleged irregularities in transportation contracts awarded by APSBCL. A centralised logistics tender was reportedly given to Sigma Supply Chain Solutions Pvt Ltd at significantly higher rates than earlier depot-wise contracts, with operational control allegedly remaining with members of the syndicate.
According to the ED, funds generated through the scheme were allegedly routed through multiple shell and front companies—including entities such as Eshanvi Infra Projects Pvt Ltd, Uni Corporate Solutions Pvt Ltd and Tag Developers—and invested in real estate and other assets. Officials said a network of shell firms was used to layer financial transactions and conceal the origin of the funds. The agency estimates that illegal revenues of nearly Rs 100 crore per month were generated through the alleged scheme.
So far, investigators have traced a money trail of about Rs 1,048.45 crore in the form of cash, gold and other benefits linked to the suspected kickback network.
