In a major political tremor in Andhra Pradesh, ex Chief Minister and YSR Congress Party (YSRCP) chief Y S Jagan Mohan Reddy finds himself at the center of a fraud. A CID investigation into an alleged ₹3,500-crore liquor scam has reported that Jagan received large monthly kickbacks during his time in office — though he hasn’t been officially named as an accused yet.
The CID filed its charge sheet in Vijayawada court on Saturday, which is yet to take it up formally. But sources from the The Indian Express confirmed that the findings are significant and politically sensitive.
Between June 2019 and May 2024, investigators believe ₹50 – ₹60 crore was collected every month through a liquor policy that gave an unfair advantage to certain companies. The money, CID claims, didn’t stop at the bottom. It allegedly moved up through a network of shell companies and middlemen, ultimately reaching senior YSRCP leaders, and even Jagan himself.
At the heart of the operation, the CID names Kesireddy Rajashekar Reddy, a former IT advisor to Jagan. He allegedly handled the cash and directed it to party leaders V Vijayasai Reddy and P V Midhun Reddy, who is currently an MP. Together, they’re accused of delivering the funds to the then CM.
The scam, investigators say, went hand-in-hand with policy manipulation. The state’s automated liquor supply system was reportedly scrapped in favour of a manual process, with loyalists placed in key roles to keep the money flowing.
What’s more, the CID alleges that around ₹250 – ₹300 crore from these bribes was used to bankroll election campaigns, and some funds ended up in gold, real estates and luxury assets abroad. So far, ₹60 crores in cash has been recovered.
The YSRCP has hit back hard, calling the case a “political conspiracy,” party coordinator Sajjala Ramakrishna Reddy said, “This is nothing but a targeted attack to silence those who stand with the people.”
He accused the current TDP government, led by N Chandrababu Naidu, of orchestrating a “manufactured narrative” to distract from its own troubles. “Jagan brought liquor sales under government control to stop corruption. Naidu gave it back to private hands,” he said.
As the case unfolds, Andhra’s political landscape braces for more turbulence.
