ED conducts raids in Rs 13,500 cr liquor scam case

The Enforcement Directorate (ED) carried out raids across multiple states on Thursday in connection with a massive Rs 3,500 crore liquor scam in Andhra Pradesh. The operation is considered a significant step in the ongoing money laundering investigation.

Nationwide operation Targeting suspected money laundering intermediaries who allegedly facilitated the financial fraud, the ED conducted simultaneous raids in about 20 locations across five states, including Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, and Delhi-NCR (National Capital Region). The raids primarily focused on entities and individuals involved in processing payments through fake and inflated bills.

Raids across several companies The raids covered several companies in Telugu states and Tamil Nadu, including Arete Institute of Medical Sciences, Sri Jewellers Eximp, NR Upadh LLP, The India Fruits Pvt Ltd (Chennai), Venkateshwara Packaging, Suvarna Durga Bottles, Rao Saheb Burugu Mahadev Jewellers, Ushodaya Enterprises, and Mohan Lal Jewellers (Chennai), among others.

Allegations of kickbacks ED officials confirmed that the raids targeted intermediaries suspected of routing nearly Rs 3,500 crore through anonymous companies, shell firms, and informal money networks. Officials clarified that no political leader is directly linked to the current raids. The investigation is based on a case registered by the state Special Investigation Team (SIT).

According to the SIT, between 2019 and 2024, 16 liquor companies allegedly paid Rs 1,677 crore in kickbacks to secure supply orders from the Andhra Pradesh State Beverages Corporation Ltd (APSBCL), resulting in contracts worth Rs 10,835 crore.

Key findings from SIT investigation The SIT has revealed large-scale irregularities during the previous YSRCP government’s tenure. Out of supply orders worth Rs 23,000 crore issued by APSBCL, over 90% went to only 40 out of 111 liquor companies. The investigation estimates that more than Rs 3,500 crore were laundered through anonymous firms, shell companies, and informal money network operators.

Ongoing investigation The liquor scam probe is ongoing, including forensic audits and tracking of informal money networks. Thursday’s ED raids mark a crucial step in this investigation. Authorities describe it as a well-organized money laundering operation. Several accused have already been arrested by the SIT, while the ED continues its investigation, focusing on money laundering offenses and asset recovery under the Prevention of Money Laundering Act (PMLA).