Andhra liquor scam: Jagan Reddy chaired liquor policy meeting, says chargesheet

The Andhra Pradesh police have filed a supplementary chargesheet in connection with an alleged Rs 3,500-crore liquor scam, implicating former Chief Minister YS Jagan Mohan Reddy. The chargesheet, submitted by the Special Investigation Team (SIT), sheds light on a meeting held in July 2019 concerning the new liquor policy, which brought under its ambit the Andhra Pradesh State Beverages Corporation Ltd (APSBCL), a state-run entity.

The SIT's 124-page supplementary chargesheet follows an earlier 305-page document submitted last month, which linked Jagan Mohan Reddy to monthly kickbacks averaging Rs 50 to Rs 60 crore. However, the earlier document did not list him as an accused. The latest chargesheet goes further, alleging that the kickbacks were laundered through low-profile individuals, including office employees.

According to the chargesheet, "During the discussions held in the meeting on 29.07.2019 chaired by Chief Minister of Andhra Pradesh, matters relating to number of shops, hiring of shop premises, shop infrastructure, manpower transportation chargers, etc., have been finalised," as stated by the police. The document also accuses Jagan of influencing the appointment of D Vasudeva Reddy as the Managing Director of APSBCL, despite other recommendations.

The chargesheet further alleges that the accused utilised low-profile individuals to launder money. Officials noted, "During the course of investigation, it was revealed that the accused have systematically laundered the kickback amount with the help of low-profile individuals who were working as office boys or employees in the companies owned by the accused." The individuals reportedly acted as couriers, depositing illicit cash into a network of bank accounts linked to the syndicate.

The investigation highlights multiple illegalities in modifying the state's Excise Policy in 2019. The police allege that the consultancy firm KPMG Advisory Services Pvt. Ltd. was hired to lend credibility to a flawed policy without following proper government protocols. KPMG's recommendations reportedly included terminating the order for supply-based auto-indenting process, advocating manual indents instead.

The SIT has arrested several individuals, including YSRCP Lok Sabha member PV Midhun Reddy, in connection with the scam. In May, the Enforcement Directorate also launched a money laundering case under the Prevention of Money Laundering Act to probe irregularities in liquor sales.

Responding to the allegations, former minister and senior YSRCP leader Ambati Rambabu told PTI, "When contacted, former minister and senior YSRCP leader Ambati Rambabu told PTI that all the allegations made in the chargesheets are baseless and “created” ones." These allegations, he argues, lack substantial evidence and are politically motivated.