In a major development in the infamous Andhra Pradesh liquor scam that took place during the tenure of former Chief Minister YS Jagan Mohan Reddy, the Special Investigation Team (SIT) has made its biggest arrest so far. According to recent reports, YSR Congress Party (YSRCP) MP PV Midhun Reddy has been arrested in connection with the case.
Midhun Reddy appeared before the SIT office in Vijayawada this morning and joined the investigation. After initial questioning, SIT officials took him into custody.
The SIT interrogated him for nearly seven hours before formally arresting him at their office. After a medical examination, he will be presented before a magistrate soon. This is the most high-profile arrest in the case to date and is expected to have a significant impact as the investigation progresses.
Reddy was denied anticipatory bail
The arrest comes shortly after Midhun Reddy was denied anticipatory bail by both the Andhra Pradesh High Court and the Supreme Court of India. The main allegation against Midhun Reddy is that he played a crucial role in changing the liquor payment system from automated to manual mode, which allegedly enabled large-scale corruption in financial transactions.
YSR Congress Party MP PV Midhun Reddy has been arrested by the SIT in connection with the alleged Rs 3,200 crore Andhra Pradesh liquor scam. Reddy, listed as Accused No. 4 (A4) in the case, was taken into custody on Saturday after nearly seven hours of intense questioning at the SIT office in Vijayawada.
The SIT questioned the Rajampet Lok Sabha MP on several critical aspects of the scam, including alleged manipulation of the state’s liquor policy, financial transactions with shell companies, and secret meetings with key individuals.
What is the Liquor Scam?
According to the SIT investigating the case, a massive Rs 3,200 crore liquor scam allegedly took place under the YSRCP government in Andhra Pradesh. The police have named K Cireddy Rajasekhar Reddy, former IT advisor to then Chief Minister YS Jagan Mohan Reddy, as the key accused.
Rajasekhar was arrested on April 21 this year at Hyderabad airport. He, along with his associates, including senior YSRCP leaders and bureaucrats, is accused of misusing the state’s liquor policy by replacing popular liquor brands with lesser-known ones, allegedly in exchange for bribes worth Rs 3,200 crore.
With a detailed plan to collect monthly kickbacks of Rs 50 to 60 crore, Rajasekhar and his associates ensured regular orders were placed with pre-approved companies in exchange for predetermined bribes.
Rajasekhar is not the only prominent name in the case. His remand report also mentions former Rajya Sabha MP V. Vijayasai Reddy, a once-close aide of Jagan, who resigned from Parliament and politics in January this year.
Another major name is PV Midhun Reddy, YSRCP MP from Rajampet and son of former Andhra Pradesh minister Peddireddy Ramachandra Reddy, who was arrested today.
What Was YSRCP’s Liquor Policy?
During the 2019 Assembly election campaign, Jagan promised to implement prohibition in the state in a phased manner. Soon after coming to power, in October 2019, the YSRCP introduced a new liquor policy, claiming it was in line with that promise.
The government decided to bring nearly 3,500 liquor shops under its direct control. Store hours were reduced and prices increased to curb alcohol consumption.
The liquor trade was handed over entirely to the state-run Andhra Pradesh State Beverages Corporation Limited (APSBCL). To check smuggling and illegal liquor production, a Special Enforcement Bureau (SEB) was set up under the Prohibition and Excise Department.
Over time, popular liquor brands gradually disappeared from shelves, replaced by unfamiliar new ones. Due to the sharp price hikes, large-scale smuggling from neighbouring Karnataka and Telangana began, forcing the government to slash prices in 2021.
Who is PV Midhun Reddy?
PV Midhun Reddy is a three-term Lok Sabha MP of YSRCP from Rajampet. He defeated BJP candidate and former Andhra Pradesh Chief Minister Nallari Kiran Kumar Reddy in the 2024 Lok Sabha polls from Rajampet. He won his first Lok Sabha election from Rajampet in 2014 by defeating BJP leader and NTR's daughter Daggubati Purandeswari.
