The Anti-Corruption Bureau (ACB) Court in Vijayawada has granted bail to YSRCP MP Midhun Reddy in connection with the alleged Andhra Pradesh liquor scam. The Rajampet MP was arrested on July 20 by a Special Investigation Team (SIT) constituted by the TDP government to investigate the alleged irregularities in liquor policy during the previous YSRCP administration. He was named as Accused Number 4 in the case.
According to reports, Midhun Reddy's arrest stemmed from suspicions regarding a ₹5 crore transaction made via cheque. The ACB Court had previously granted him interim bail to participate in the Vice-Presidential election. His counsel emphasized the importance of his duty as an elected representative, leading the court to grant interim bail with the condition that he surrender on September 11.
The recent bail order requires Midhun Reddy to furnish a bond of ₹2 lakh with two sureties. He is also directed not to leave the country without prior notice to the court and must appear before the investigation officer every Friday and Monday. He had been in Rajahmundry jail for 71 days. Following the court's order, he is expected to be released from Rajahmundry Central Jail.
The Andhra Pradesh liquor scam involves alleged irregularities and kickbacks during the YSRCP government's term from 2019 to 2024. The Crime Investigation Department (CID) estimated losses to the state exchequer of around ₹4,000 crore. The Enforcement Directorate (ED) also launched a probe based on an FIR registered by the Andhra Pradesh CID. The FIR alleged that the accused sidelined popular liquor brands that refused to pay kickbacks, replacing them with lesser-known or spurious brands. The procurement system was allegedly shifted from automated to manual approvals to manipulate supply volumes.
The SIT filed chargesheets alleging that the accused favored select distilleries, coerced suppliers into paying kickbacks of 15 to 20% of their invoice value, and created shell distilleries to channel funds. Key officials were allegedly appointed to manipulate eligibility norms and suppress dissenting suppliers.
The chargesheet filed by the Andhra Pradesh police mentioned former Chief Minister YS Jagan Mohan Reddy as one of the recipients of the kickbacks, averaging ₹50-60 crore per month. The chargesheet alleges that Kesireddy Rajasekhar Reddy, Jagan's former IT advisor, was the mastermind behind the scam. He is accused of manipulating the excise policy and planting loyalists in the Andhra Pradesh State Beverages Corporation Limited (APSBCL). The laundered money was allegedly invested in land, gold, and luxury assets in Dubai and Africa.
YSRCP leaders have claimed that Midhun Reddy and others were unfairly implicated in the case and that the Chandrababu Naidu government is targeting individuals close to YS Jagan Mohan Reddy.
In addition to Midhun Reddy, the ACB Court had earlier granted bail to three other accused in the case: K. Dhanunjay Reddy, Balaji Govindappa, and Krishna Mohan Reddy.
