Andhra Pradesh CID alleges former CM Y.S. Jagan Mohan Reddy received kickbacks in a ₹3,500 crore liquor scam. Detailed probe uncovers financial irregularities and political links.

CID Links Ex-Andhra CM Jagan Mohan Reddy to ₹3,500 Crore Liquor Scam

In a significant political and legal development, the Andhra Pradesh Criminal Investigation Department (CID) has alleged that former Chief Minister Y.S. Jagan Mohan Reddy received kickbacks linked to a ₹3,500 crore liquor scam. The investigation claims that high-level corruption and a nexus between politicians, officials, and liquor syndicates plagued the state’s excise sector during his tenure.

CID Probe Reveals Widespread Corruption in Liquor Distribution

According to the CID’s preliminary report, a web of shell companies and benami firms were used to route illegal funds generated from the liquor trade in Andhra Pradesh. The agency states that several liquor manufacturers and distributors colluded with top officials to inflate procurement costs and manipulate supply chains.

The kickbacks, which allegedly ran into hundreds of crores, were reportedly funneled through various fronts and proxies to reach political figures, including the former Chief Minister.

Key Accusations Against Jagan Mohan Reddy

The CID claims that during Jagan’s regime, the state’s liquor policy was tweaked to benefit a few selected companies. These firms, allegedly handpicked without proper bidding processes, were awarded licenses and contracts, despite lacking requisite qualifications or experience.

Some of the major allegations include:

Favoritism in allocation of wholesale liquor licenses.
Backdoor funding of political activities via liquor revenue.
Money laundering through fake companies with links to party workers.
Benami ownership of liquor outlets by political affiliates.

A senior CID official said, “Our financial intelligence analysis has tracked substantial irregularities in bank transfers, including shell company transactions that ultimately trace back to close aides of the former CM.”

H2: Political Fallout and YSRCP Response

The YSR Congress Party (YSRCP) has dismissed the allegations as “politically motivated”, especially in the wake of their recent defeat in the 2024 assembly elections. A party spokesperson said, “This is nothing but a witch hunt aimed at tarnishing the image of our leader. The CID is acting at the behest of the ruling dispensation.”

However, the CID maintains that its findings are backed by solid documentation, digital evidence, and financial records. Multiple people are expected to be summoned for questioning, and further arrests could follow.

Given the scale of the financial irregularities, sources indicate that the Enforcement Directorate (ED) is expected to join the investigation. The ED may probe possible violations of the Prevention of Money Laundering Act (PMLA) and Foreign Exchange Management Act (FEMA) if links to overseas transactions are found.

Legal experts say this case could be one of the biggest political corruption scandals in Andhra Pradesh in recent years.

The CID is currently preparing a charge sheet based on data gathered over the past several months. This includes:

Statements from liquor traders and excise officials
Email and mobile communications
Financial audit trails
Surveillance footage from key meetings

Officials say the agency is also coordinating with central financial watchdogs and may seek court permission to interrogate high-profile individuals involved.

Under Jagan Mohan Reddy’s government, Andhra Pradesh moved toward a state-controlled liquor policy, claiming it aimed to reduce alcohol consumption. However, the CID alleges this centralization of control helped a few companies gain monopoly power—facilitating corruption at an unprecedented scale.

Many industry experts had earlier raised concerns about non-transparent practices, but they were largely dismissed by the state administration at the time.

The allegations against Jagan Mohan Reddy, if proven, could mark a turning point in Andhra Pradesh’s political landscape. While the former CM and his party maintain their innocence, the CID’s ₹3,500 crore liquor scam probe is expected to shake up the state’s corridors of power.

More updates will follow as the investigation deepens and wider implications unfold.