Jagan named in ₹3,500 crore scam

Amaravati

In a major development in the ₹3,500 crore liquor scam, Andhra Pradesh Police have filed a 305-page chargesheet naming former Chief Minister Y.S. Jagan Mohan Reddy as a recipient of alleged kickbacks during the 2019–24 YSRCP regime. Though his name appears in the document, he has not been listed as an accused.

According to the chargesheet, monthly bribes amounting to ₹50–60 crore were reportedly collected and funneled to Jagan Reddy through a network involving Kesireddy Rajasekhar Reddy (A-1), Vijay Sai Reddy (A-5), Mithun Reddy (A-4), and Balaji Govindappa (A-33). The funds were routed through shell distilleries and companies, with a portion allegedly used to finance YSRCP’s election campaign.

Rajasekhar Reddy has been identified as the “mastermind” of the scam, accused of manipulating the excise policy by scrapping the automated Order for Supply (OFS) system in favor of manual approvals. The switch reportedly allowed officials to demand kickbacks, which began at 12% of the base price and later increased to 20%. The chargesheet also mentions a 2019 meeting at Hotel Park Hyatt in Hyderabad, where distillery owners were allegedly coerced into accepting the manual OFS system under threat of losing supply orders.

On Saturday, the Special Investigation Team arrested YSRCP MP P.V. Mithun Reddy after extended questioning. Meanwhile, the Enforcement Directorate has also launched a money laundering probe under the PMLA. YSRCP leaders have dismissed the arrests as politically motivated, accusing the current administration of targeting opposition figures.