ED summons YSRCP MP PV Midhun Reddy in AP liquor 'scam' probe case

The ED has intensified its investigation into the alleged ₹3,500-crore liquor scam in Andhra Pradesh . It has asked YSRCP MP P V Midhun Reddy and former MP V Vijayasai Reddy to appear for questioning on January 23 and January 22 . Officials say the case is now entering a crucial phase as the ED tracks the money trail behind the alleged scam.

The controversy centres on the liquor policy implemented between 2019 and 2024 , when liquor sales and supply were routed through the Andhra Pradesh State Beverages Corporation Limited (APSBCL) . The Andhra Pradesh Police Special Investigation Team (SIT) alleges that the policy was structured in a way that helped a select group of suppliers dominate the market. In return, investigators claim, large kickbacks were collected not as isolated bribes but as a steady and organised flow of illicit money.

According to the SIT chargesheets filed so far, the alleged kickbacks averaged around ₹50–60 crore per month . These funds were allegedly collected from liquor suppliers who benefited under the policy and moved through multiple routes to conceal the end destination. While the chargesheets reportedly mention former chief minister Y S Jagan Mohan Reddy as one of the recipients of kickbacks, he has not been named as an accused in the prosecution complaints so far. Jagan has described the entire case as a political conspiracy , and the YSRCP has strongly denied the allegations.

What makes the case stand out is the way investigators say the money was handled. The SIT has claimed that the alleged kickbacks were systematically laundered using low-profile individuals such as employees, office staff, or associates whose bank accounts were used to deposit and transfer funds. This method allegedly helped break one large illegal flow into many smaller transactions, making it harder to track. The ED’s entry into the case is important precisely because money-laundering investigations focus on such layering tracing funds from the point of collection to final beneficiaries.

The investigation has already seen significant movement. The SIT has filed three chargesheets , showing the case has progressed beyond preliminary allegations. P V Midhun Reddy , now summoned by the ED, was earlier arrested by the SIT in July 2025 and is currently out on bail . The ED registered a case under the Prevention of Money Laundering Act (PMLA) in September 2025 , taking cognisance of the SIT complaint and widening the probe to examine “proceeds of crime,” financial channels, and asset trails.

The list of accused emerging from the SIT probe also suggests the case is expanding. Reports have described Kesireddy Rajasekhar Reddy (Raj Kasireddy) as a key figure in the alleged operation, along with names such as K. Dhanunjaya Reddy, P. Krishna Mohan Reddy, Govindappa Balaji , and D. Vasudeva Reddy , an IRTS officer linked to APSBCL-related decisions. Supplementary chargesheets have reportedly added new names over time, indicating investigators are still building the larger network behind the alleged scam.

The ED summons are therefore not just a procedural step they could shape the next direction of the case. Under PMLA, interrogation is often conducted in multiple rounds , as investigators match statements with bank records, call data, and the testimonies of other accused. The coming week’s questioning may reveal whether the probe remains focused on policy manipulation or moves decisively towards identifying the full chain of money movement and final beneficiaries .