Hyderabad, March 6: The Enforcement Directorate (ED) in Hyderabad has seized assets worth ₹441.63 crore linked to the Andhra Pradesh liquor scam. This action targets Keshireddy Rajasekhar Reddy, his family members, and associated individuals.
The properties attached include both movable and immovable assets belonging to Rajasekhar Reddy, his relatives, and companies connected to them, as well as properties linked to Booneti Chanakya and other associates. This seizure falls under the Prevention of Money Laundering Act (PMLA), 2002.
In a statement released on Friday, the ED detailed that the seized assets comprise bank balances, fixed deposits, land parcels, and other real estate. The investigation was initiated based on a complaint from the Principal Secretary of the Andhra Pradesh government, which alleged a loss of ₹4,000 crore to the state treasury.
The inquiry revealed that physical cash kickbacks were collected and stored at various locations in Hyderabad, later distributed by designated cash handlers within the syndicate. The ED has traced a money trail amounting to ₹1,048.45 crore, identified as bribes. These bribes were reportedly coerced from several distilleries in cash, gold, and other forms.
The agency noted that the liquor syndicate gained illegal profits through control and operations of certain distilleries and financial benefits from liquor transportation. The investigation found that the proceeds from these crimes were used to purchase real estate and for personal gains of syndicate members. A significant portion of the illicit earnings was reportedly concealed or misappropriated. The ED stated that further investigations are ongoing.
According to the ED, prior to 2019, the liquor trade in Andhra Pradesh was regulated through a transparent and automated software system, ensuring end-to-end digital tracking of purchases, supplies, and sales, thus creating a verified electronic audit trail. However, following the 2019 assembly elections, the newly formed state government monopolized retail liquor outlets through the Andhra Pradesh State Beverages Corporation Limited (APSBCL).
Under an alleged criminal conspiracy, the automated system was deliberately shut down, replaced by a manual system that granted APSBCL officials the authority to issue Orders for Supply (OFS). The ED accused the manual OFS system of being misused to discriminate against existing liquor brands, sidelining them from the market. In contrast, certain favored brands received preferential and irregular allocations in exchange for bribes.
As part of this scheme, the syndicate allegedly promoted the introduction of similarly branded products by artificially inflating basic prices. This price manipulation allowed distilleries producing these brands to generate surplus margins, purportedly to meet the cartel’s demands for illegal funds.
The PMLA investigation further revealed that distilleries were allegedly coerced into paying illegal bribes ranging from 15% to 20% of the basic price as a condition for obtaining OFS approval. Manufacturers refusing to comply faced pressure, including withheld payments and rejected supply orders.
The ED indicated that negotiations related to bribery demands and collections were conducted via encrypted VOIP calls and applications like Signal, concealing the identities and roles of key individuals such as Booneti Chanakya (alias Prakash), Muppidi Avinash (alias Sumit), and Mohammad Saif. The agency stated that Keshireddy Rajasekhar Reddy colluded with other members of the liquor syndicate to orchestrate a multi-crore scam in the liquor procurement and distribution system in Andhra Pradesh.
The ED claims that this scam involved control and manipulation of the APSBCL procurement process, resulting in an estimated loss of ₹3,500 crore to the state treasury. The proceeds from the scam were allegedly laundered and distributed among syndicate members for personal benefits.
The ED has accused Keshireddy Rajasekhar Reddy of receiving bribes amounting to approximately ₹3,500 crore in collaboration with Booneti Chanakya, Muppidi Avinash Reddy, Tukekula Eshwar Kiran Kumar Reddy, Paila Dilip, Saif Ahmed, and others.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
Leave a Comment