ED intensifies probe into Andhra Pradesh liquor case
Vijayawada, March 9 : The Enforcement Directorate (ED) intensified its investigation into the multi-crore liquor scam in Andhra Pradesh by questioning four accused here on Monday.
Krishnamohan Reddy was questioned by the ED officials for two hours while the questioning of Dhanunjay Reddy, Venkatesh Naidu and Bonneti Chanakya was continuing.
The questioning of the accused came three days after the ED attached movable and immovable properties worth Rs 441.63 crore belonging to Kessireddy Rajasekhara Reddy, his family members and related entities; Booneti Chanakya and his related entities; relatives and entities of Donthireddy Vasudeva Reddy; and other persons and entities under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The Central agency initiated the investigation based on an FIR registered by CID, Andhra Pradesh, on the complaint of the Principal Secretary to the Government of Andhra Pradesh, for loss to the Government exchequer to the tune of Rs 4,000 crore.
The scam had allegedly occurred during the regime of the YSR Congress party.
According to the ED, its investigations revealed that physical cash kickbacks were collected and stored at multiple locations in Hyderabad, from where they were subsequently moved, distributed, or disposed of by designated cash handlers of the syndicate.
ED investigation has so far revealed a money trail of Rs 1048.45 crore in the form of kickbacks, which several distilleries were compelled to pay in the form of cash, gold, etc as well as in the form of control and operation of some distilleries by the liquor syndicate and also in the form of financial gains derived from transport of liquor.
The proceeds of crime were allegedly used for the purchase of immovable properties and personal enrichment of the members of the liquor syndicate and their associates.
A substantial portion of the Proceeds of Crime has been found to be concealed or dissipated by the accused persons.
PMLA investigation has revealed that prior to 2019, the liquor trade in Andhra Pradesh was regulated through a transparent and automated software system, which ensured end-to-end digital tracking of procurement, supply, and sales, thereby leaving a verifiable electronic audit trail. Subsequent to the 2019 Assembly elections, the newly formed State Government monopolised retail liquor outlets through Government Retail Outlets (GROs) operated by the Andhra Pradesh State Beverages Corporation Limited (APSBCL).
As part of the criminal conspiracy, the automated system was deliberately disabled and replaced with a manual system, thereby vesting unfettered discretionary powers with APSBCL officials in the issuance of Orders for Supply (OFS). The manual OFS regime was misused to discriminate against established liquor brands, which were deliberately marginalised or removed from the market. Simultaneously, preferential and irregular allocations were extended to select “favoured” brands on receipt of kickbacks, the ED said.
Krishnamohan Reddy was questioned by the ED officials for two hours while the questioning of Dhanunjay Reddy, Venkatesh Naidu and Bonneti Chanakya was continuing.
The questioning of the accused came three days after the ED attached movable and immovable properties worth Rs 441.63 crore belonging to Kessireddy Rajasekhara Reddy, his family members and related entities; Booneti Chanakya and his related entities; relatives and entities of Donthireddy Vasudeva Reddy; and other persons and entities under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The Central agency initiated the investigation based on an FIR registered by CID, Andhra Pradesh, on the complaint of the Principal Secretary to the Government of Andhra Pradesh, for loss to the Government exchequer to the tune of Rs 4,000 crore.
The scam had allegedly occurred during the regime of the YSR Congress party.
According to the ED, its investigations revealed that physical cash kickbacks were collected and stored at multiple locations in Hyderabad, from where they were subsequently moved, distributed, or disposed of by designated cash handlers of the syndicate.
ED investigation has so far revealed a money trail of Rs 1048.45 crore in the form of kickbacks, which several distilleries were compelled to pay in the form of cash, gold, etc as well as in the form of control and operation of some distilleries by the liquor syndicate and also in the form of financial gains derived from transport of liquor.
The proceeds of crime were allegedly used for the purchase of immovable properties and personal enrichment of the members of the liquor syndicate and their associates.
A substantial portion of the Proceeds of Crime has been found to be concealed or dissipated by the accused persons.
PMLA investigation has revealed that prior to 2019, the liquor trade in Andhra Pradesh was regulated through a transparent and automated software system, which ensured end-to-end digital tracking of procurement, supply, and sales, thereby leaving a verifiable electronic audit trail. Subsequent to the 2019 Assembly elections, the newly formed State Government monopolised retail liquor outlets through Government Retail Outlets (GROs) operated by the Andhra Pradesh State Beverages Corporation Limited (APSBCL).
As part of the criminal conspiracy, the automated system was deliberately disabled and replaced with a manual system, thereby vesting unfettered discretionary powers with APSBCL officials in the issuance of Orders for Supply (OFS). The manual OFS regime was misused to discriminate against established liquor brands, which were deliberately marginalised or removed from the market. Simultaneously, preferential and irregular allocations were extended to select “favoured” brands on receipt of kickbacks, the ED said.