The Enforcement Directorate (ED) conducted searches at multiple locations across India on Thursday, September 18, 2025, as part of a money laundering investigation into an alleged ₹3,500 crore liquor scam in Andhra Pradesh. The searches targeted individuals and entities suspected of facilitating kickbacks through bogus and inflated invoices.

The ED's Hyderabad unit led the searches, which spanned across Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, Delhi, and the National Capital Region (NCR). Authorities searched approximately 20 locations, including offices and companies purportedly linked to the accused. The focus was on those suspected of routing illicit funds through shell companies, benami firms, and hawala networks. Premises related to some of the accused individuals were also searched.

The ED's action is based on a predicate offense registered by the Special Investigation Team (SIT) of the Andhra Pradesh police, which had previously reported large-scale fund diversions. The SIT alleges that 16 liquor companies paid ₹1,677 crore in bribes to secure supply orders from the Andhra Pradesh State Beverages Corporation Limited (APSBCL) between 2019 and 2024. In return, these companies reportedly obtained contracts worth ₹10,835 crore. According to the SIT, over ₹3,500 crore in bribes was funneled through benami firms, shell companies, and hawala operators. Payments released by the APSBCL were allegedly diverted by distilleries under the guise of raw material purchases and brand promotions. These funds were then allegedly withdrawn in cash and handed over as kickbacks.

The ED has invoked the Prevention of Money Laundering Act (PMLA) in this case. The agency has already recorded statements from multiple distilleries allegedly linked to the scam and questioned Raj Kasireddy, the prime accused, who is currently in jail. The ED is tracing the flow of illicit funds and the laundering routes used to channel the suspected proceeds of crime.

The investigation into the Andhra Pradesh liquor scam has been ongoing for some time. The SIT has filed multiple chargesheets in the case, with the latest supplementary chargesheet detailing the roles of individuals linked to the former Chief Minister Y.S. Jagan Mohan Reddy. To date, the SIT has identified 29 individuals and 19 companies as accused in the scam. Twelve arrests have been made, and four individuals have been granted bail.

The ED searches mark a significant development in the investigation, indicating a widening of the probe to include those who allegedly facilitated the money laundering aspects of the scam. The agencies are scrutinizing transactions and financial records to identify the beneficiaries of the illicit funds and to build a case against those involved in the alleged scam.