YSRCP Lok Sabha MP PV Midhun Reddy was produced before a Vijayawada ACB court on Sunday, following his arrest on Saturday by the Special Investigation Team (SIT) in connection with the alleged ₹3,200-crore liquor scam. The arrest took place at approximately 7:30 pm in Vijayawada after several hours of interrogation by the SIT.

Midhun Reddy, who represents the Rajampet constituency in Andhra Pradesh, is considered a close associate of former Andhra Pradesh CM Jagan Mohan Reddy. The SIT has labeled him as a "core conspirator" in the liquor scam that reportedly occurred during the previous YSRCP regime. He is accused of wielding influence over officials of the Andhra Pradesh State Beverages Corporation Limited (ABPSCL).

The arrest was anticipated after the Andhra Pradesh High Court and the Supreme Court rejected Midhun Reddy's anticipatory bail pleas, with the Supreme Court denying the plea on Friday. Following his arrest, medical examinations were conducted, which revealed no health concerns, paving the way for his court appearance in accordance with protocol.

The case against Midhun Reddy is based on an FIR lodged by the state's Crime Investigation Department (CID) at the CID office in Mangalgiri, under various sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act. He has been named as the fourth accused (A4) in the FIR.

The investigation into the liquor scam began after the TDP-led coalition government assumed power in Andhra Pradesh and ordered a probe into the liquor policy implemented by the YSRCP. The CID investigation revealed that liquor procurement processes were manipulated to favor certain brands, resulting in wrongful gains of ₹3,200 crore and substantial losses to the state exchequer. The investigation stems from a complaint filed by Y Venkateswar Rao Srinivas, alleging irregularities in the functioning of the APSBCL between October 2019 and March 2024. The complaint alleges that purchase orders were made for new and spurious liquor brands, some produced by private distilleries with YSRCP leaders as partners, and that kickbacks were paid for not purchasing stock from popular liquor brands.

Several other individuals have also been arrested in connection with the scam, including Raj Kesireddy, advisor to the former Chief Minister YS Jagan Mohan Reddy, Krishna Mohan Reddy, former Officer on Special Duty (OSD) to the former CM, Dhanunjay Reddy, a former IAS officer and secretary to Jagan Mohan Reddy, Chevireddy Bhaskar Reddy, former MLA, and Balaji Govindappa, director of Bharati Cements.

So far, the SIT has questioned approximately 268 witnesses in connection with the scam and seized ₹62 crore. Additionally, authorities have seized 74 hard drives, a laptop, and over 1000 documents during the investigation. The SIT has filed a preliminary chargesheet of over 300 pages in a Vijayawada court, supplemented by more than 100 forensic lab reports and several electronic devices. The chargesheet includes remand reports of the arrested accused and other pertinent documents. A second chargesheet is expected to be filed in the coming days.

Midhun Reddy maintains his innocence, alleging that the case is politically motivated and that he has been falsely implicated. He stated his intention to fight the case legally. The SIT questioned Midhun Reddy on the establishment of new distillery companies, the collection of kickbacks from liquor traders, the deposit of money into his companies, and his connections with other accused individuals. The SIT reportedly presented evidence gathered during the investigation to the MP, seeking his explanation.