The Enforcement Directorate (ED) has stepped up its investigation into the multi-crore liquor scam in Andhra Pradesh by interrogating four suspects in Vijayawada. Krishnamohan Reddy was questioned for two hours, while the interrogation of Dhanunjay Reddy, Venkatesh Naidu, and Bonneti Chanakya was ongoing. The ED’s actions follow the attachment of assets worth Rs 441.63 crore belonging to various individuals and entities under the Prevention of Money Laundering Act.
The ED’s probe was initiated based on an FIR filed by the CID, Andhra Pradesh, regarding a complaint by the Principal Secretary to the Government of Andhra Pradesh, alleging a loss of Rs 4,000 crore to the state exchequer. The investigation has uncovered a money trail of Rs 1048.45 crore in kickbacks, involving cash, gold, and control of distilleries. These proceeds were allegedly used for personal enrichment and purchasing properties by the liquor syndicate members.
Prior to 2019, the liquor trade in Andhra Pradesh was regulated through a transparent digital system, but post the 2019 elections, a manual system was introduced, granting discretionary powers to officials. This manual system was allegedly misused to favor certain liquor brands through discriminatory practices. The ED has highlighted irregularities in the allocation of orders for supply, pointing to a scheme where kickbacks influenced brand preferences.
