YSRCP MP Midhun Reddy Held in Rs 3,200 Cr Liquor Scam After SC Rejects Bail: SIT Files Chargesheet, Seizes Rs 62 Cr

The Special Investigation Team (SIT) of Andhra Pradesh police on Saturday arrested senior YSR Congress Party leader and parliamentarian Peddireddy Midhun Reddy in connection with the Rs 3,200 crore liquor scam that allegedly took place during the previous YSRCP regime, officials familiar with the development confirmed.  

Following nearly seven hours of questioning at the Crime Investigation Department (CID) office in Mangalagiri, SIT authorities formally informed Reddy’s family about his arrest. He will be produced before the local court in Vijayawada on Sunday, an official said.

Reddy, who is named as accused number 4 (A-4) in the liquor scam case, was summoned for questioning a day after the Supreme Court rejected his petition seeking anticipatory bail. On Friday, a bench of Justices JB Pardiwala and R Mahadevan denied him protection from arrest, dismissing his allegation that the case was a “political ploy” as he had no role in the liquor procurement policy of APSBCL during the YSRCP government from 2019 to 2024. Reddy had approached the apex court after the Andhra Pradesh High Court dismissed his anticipatory bail plea on July 15.

Earlier, on July 15, the SIT had issued a lookout circular (LOC) against Reddy to prevent him from fleeing abroad and had formed special teams to trace his whereabouts, officials said. 

300-Page Chargesheet Filed; SIT Seizes Rs 62 Crore in Assets

During the interrogation, SIT authorities questioned the MP extensively about alleged commissions from liquor manufacturers routed through shell companies to ultimate beneficiaries, presenting evidence collected during the probe to seek his explanation.

Simultaneously, the SIT filed a preliminary 300-page chargesheet before the Vijayawada court, which includes over 100 forensic lab reports, electronic devices, remand reports of arrested accused, and other relevant documents. The SIT informed the court that it has so far seized assets worth Rs 62 crore, examined 268 witnesses, and recorded statements of 11 individuals.

“Although Mithun Reddy’s name appears in the chargesheet, the officials have not clearly explained his specific role. The SIT told the court that it would file another detailed chargesheet within 20 days, noting that the investigation is in a crucial phase and that more information would come to light soon,” an official stated. 

So far, 12 individuals, including Reddy, have been arrested in connection with the case. Other prominent arrests include Kasireddy Rajasekhar Reddy (A-1), former IT advisor to the previous YSRCP government, on April 21, 2025; Sajjala Sridhar Reddy (A-6), Managing Director of SPY Agro Industries, on April 26, 2025; and B Chanakya (A-8), P. Dilip (personal assistant to Rajasekhar Reddy), and Govindappa Balaji (Director, Bharathi Cements), all arrested in Mysuru on May 13, 2025.

Allegations of Kickbacks and Political Vendetta

The ₹3,200 crore liquor scam pertains to alleged manipulation of the excise policy to benefit certain liquor companies in exchange for kickbacks. The state initiated the investigation following a complaint by Y Venkateswar Rao Srinivas, who alleged irregularities in APSBCL operations between October 2019 and March 2024, including procurement of spurious liquor brands from distilleries linked to YSRCP leaders while sidelining popular brands in violation of norms.

An internal five-member committee of the excise department and APSBCL found evidence of suppression of established brands and preferential allocation to certain new brands during its probe.

Meanwhile, YSRCP has condemned Chief Minister N Chandrababu Naidu, accusing him of using false cases to target individuals close to party chief Jagan Mohan Reddy. “The more vindictive the actions of the Chandrababu Naidu government, the stronger our resolve becomes to fight back and expose the failures and corruption of the coalition. In what way Midhun Reddy is connected with the liquor scam is neither known nor revealed, and the SIT could not answer the court when asked about the details,” YSRCP spokesperson and former MLA Malladi Vishnu said on Saturday.

Calling the case against Midhun Reddy part of a larger “vindictive conspiracy,” Vishnu added, “But we will bounce back to call the bluff of Naidu.”