P.V. Midhun Reddy, a Member of Parliament representing the Rajampet constituency and a member of the YSR Congress Party (YSRCP), was arrested on Saturday by Andhra Pradesh police in connection with a ₹3,200-crore liquor scam that allegedly occurred during the previous YSRCP government. The arrest follows hours of questioning by the Special Investigation Team (SIT) in Vijayawada.
The SIT, which is investigating the alleged scam, arrested Midhun Reddy around 7:30 pm on Saturday. Andhra Pradesh's Home Minister, Vangalapudi Anitha, confirmed the arrest. Midhun Reddy is accused of playing a key role in the multi-crore scam, conspiring with other accused individuals to divert funds collected from distillery companies. He is listed as Accused No. 4 in the case and is scheduled to appear before the ACB Special Court in Vijayawada on July 20.
The arrest occurred a day after the Supreme Court rejected Midhun Reddy's plea for anticipatory bail. Prior to the Supreme Court's decision, the Andhra Pradesh High Court had also dismissed his petition.
The investigation into the liquor policy implemented between 2019 and 2024 has revealed large-scale irregularities and misappropriation of funds. Allegedly, YSRCP leaders promoted a new liquor policy, introduced new brands, and accepted kickbacks from distillery companies, resulting in significant losses for the government.
Several individuals have already been arrested in connection with the case, including Raj Kesireddy, who was an advisor to the former Chief Minister Y. S. Jagan Mohan Reddy, K. Dhanunjaya Reddy, a retired IAS officer and former secretary to Jagan Mohan Reddy, Krishna Mohan Reddy, a former Officer on Special Duty (OSD), and Chevireddy Bhaskar Reddy, a former MLA.
According to reports, investigators have uncovered a kickback network that siphoned off nearly ₹3,500 crore over five years. The SIT has questioned 268 witnesses in the case and has submitted a preliminary 300-page chargesheet to the ACB court, including forensic lab reports. The SIT has informed the court that the investigation is ongoing and that an additional chargesheet will be filed within 20 days.
The Crime Investigation Department (CID) initially investigated the case last year following a complaint by an official from the Excise Department. The complaint alleged irregularities in the operations of the Andhra Pradesh State Beverages Corporation Limited (APSBCL) during Jagan Reddy's administration from October 2019 to March 2024. It was alleged that purchase orders were made for new and spurious liquor brands, some from private distilleries with ties to YSRCP leaders, and that bribes were accepted to avoid purchasing from well-known liquor brands. Later, the TDP-led NDA government formed an SIT, led by NTR District Commissioner of Police SV Rajashekhar Babu, to further investigate the case.
The YSRCP has criticized the arrest, claiming that it is a politically motivated act of revenge by Chief Minister N Chandrababu Naidu and that false charges are being brought against those close to YSRCP leader YS Jagan Mohan Reddy. Senior YSRCP leader Malladi Vishnu stated that the case against Midhun Reddy is part of a larger conspiracy to target individuals close to the party leadership and that the party will fight back against what they see as vindictive actions by the Naidu government. Another YSRCP leader, L Appi Reddy, expressed confidence that justice will prevail and emphasized Midhun Reddy's family's long history in politics.
Midhun Reddy has denied the allegations, claiming that the case is politically motivated and that he has been falsely implicated. He stated his intention to fight the case legally.
