AP Liquor Scam Probe Deepens as ED Seizes ₹441 Crore Assets

The investigation into the alleged Andhra Pradesh liquor scam has intensified after the Enforcement Directorate (ED) attached assets worth more than ₹441 crore belonging to individuals linked to the case. The central agency said the properties belong to key accused and their associates who are suspected to have played a role in a large network that allegedly manipulated the state’s liquor distribution system.

According to the ED, the attached assets include bank balances, fixed deposits, land parcels and other immovable properties linked to Kessireddy Rajasekhara Reddy , considered one of the prime accused in the case, along with his family members and associated entities. Assets connected to other accused, including Booneti Chanakya and Donthireddy Vasudeva Reddy , were also attached as part of the ongoing probe.

The investigation stems from allegations that irregularities took place in the state’s liquor policy during the tenure of the YSR Congress Party (YSRCP) government . After the 2019 Assembly elections , the state introduced a system in which retail liquor sales were conducted through Government Retail Outlets (GROs) managed by the Andhra Pradesh State Beverages Corporation Limited (APSBCL) .

Investigators claim that the existing automated system for managing liquor supply and distribution was replaced with a manual process , giving discretionary powers to officials responsible for issuing Orders for Supply (OFS) . This shift allegedly allowed certain liquor brands to receive preferential treatment in supply orders.

According to the ED, the alleged manipulation enabled a network of intermediaries and businesses to generate substantial illegal proceeds through kickbacks and irregular procurement practices. The agency estimates that the irregularities may have caused losses of around ₹4,000 crore to the state exchequer .

The ED registered a case under the Prevention of Money Laundering Act (PMLA) in September 2025 , taking cognisance of a complaint filed by a Special Investigation Team (SIT) of the Andhra Pradesh Police . Investigators are examining financial transactions and the movement of funds through multiple entities to establish the alleged money-laundering trail.

The development has triggered fresh political confrontation in the state. Andhra Pradesh IT and Education Minister Nara Lokesh alleged that the irregularities amounted to a massive scam worth nearly ₹3,500 crore and claimed that investigators have already traced a money trail of about ₹1,048 crore . He also alleged that the system generated kickbacks of nearly ₹100 crore every month .

Lokesh questioned former chief minister Y. S. Jagan Mohan Reddy over the allegations and criticised the previous government’s promise of liquor prohibition during the 2019 elections. He demanded answers regarding the alleged kickbacks and money laundering linked to the liquor trade.

The YSRCP , however, has rejected the allegations, stating that the claims made by political opponents are baseless and politically motivated .

With the ED continuing its probe and multiple financial transactions under scrutiny, the case is likely to remain a major political and legal issue in Andhra Pradesh in the coming months.