ED to look into AP’s Liquor Scam allegations?

After the Delhi liquor scam led to K. Kavitha’s imprisonment and played a role in Arvind Kejriwal’s downfall, a similar controversy is now set to shake Andhra Pradesh politics.

TDP MP alleges scam under YSRCP rule

Lavu Sri Krishna Devarayalu, the Telugu Desam Party (TDP) MP from Narasaraopet, has brought forward explosive allegations in the Lok Sabha, claiming that a massive Rs 4,000 crore liquor scam took place during the YSR Congress Party (YSRCP) government led by Y. S. Jagan Mohan Reddy (2019-2024).

He urged the Centre to direct the Enforcement Directorate (ED) to investigate the alleged money laundering tied to the scam, which he claims involves individuals closely associated with the former administration.

On Tuesday night, Krishna Devarayalu had a private meeting with Union Home Minister Amit Shah, where he reportedly submitted key documents related to the alleged scam. He pressed for a thorough probe into the financial irregularities and foreign fund transfers linked to liquor sales in the state.

Earlier, he also met with Chief Minister N. Chandrababu Naidu, who had already formed a Special Investigation Team (SIT) to look into the case.

Money trails and kickbacks uncovered?

Preliminary SIT investigations have allegedly unearthed:

• Illegal fund transfers linked to a sitting Lok Sabha MP and a former Rajya Sabha MP from YSRCP.
• A cash-only system enforced at liquor shops between 2019 and 2024, barring digital transactions.
• Liquor manufacturers’ statements under Section 164 of the CrPC, confirming the existence of a scam.
• Allegations that R150 to Rs 200 was extorted per liquor case, accumulating to nearly Rs 80 crore per month in kickbacks.

During Jagan Mohan Reddy’s tenure, his government abolished private liquor stores, placing complete control over liquor sales in the hands of the state. This setup, now under scrutiny, allegedly paved the way for systematic corruption and financial mismanagement. With the Centre likely to intervene, this scandal could become a political storm for YSRCP, further complicating its position in the state.