The Enforcement Directorate has summoned two senior leaders of the YSR Congress Party for questioning in connection with an alleged Rs 3,500-crore liquor scam linked to the party’s tenure in Andhra Pradesh. Officials said the summons come ahead of ED hearings scheduled for January 22 and 23, during which statements will be recorded under the Prevention of Money Laundering Act.
YSRCP MP P V Midhun Reddy has been asked to appear before the ED on January 23, while former MP V Vijayasai Reddy has been summoned for January 22. The questioning will focus on the formulation and implementation of the state’s liquor policy between 2019 and 2024. Midhun Reddy had earlier been arrested by the Andhra Pradesh Police Special Investigation Team in July 2025 and is currently out on bail.
Vijayasai Reddy is also named as an accused in the FIR filed by the SIT, which alleges that illicit funds generated through the liquor policy were routed through him to former chief minister Y S Jagan Mohan Reddy. Jagan Mohan Reddy has denied the allegations and described the case as politically motivated.
The ED registered a money laundering case in September 2025 after taking cognisance of the SIT’s findings. So far, the SIT has filed three chargesheets, alleging that kickbacks of Rs 50 to 60 crore per month were generated under the policy. While the chargesheets claim that the proceeds ultimately benefited Jagan Mohan Reddy, he has not been formally named as an accused in the prosecution complaints.
According to the investigation, a meeting chaired by the chief minister in July 2019 finalised key aspects of the new liquor policy, including the number of outlets, infrastructure, manpower and transport charges, with retail sales to be run through the Andhra Pradesh State Beverages Corporation Limited. Investigators allege that kickbacks were laundered through low-profile individuals, including office staff and employees, who were used to move funds between accused persons.
The chargesheets also allege that Jagan Mohan Reddy influenced the appointment of D Vasudeva Reddy as managing director of APSBCL despite alternative recommendations. They further claim that warnings from senior excise officials about irregularities were ignored and that parts of the kickback money were distributed as salaries before being transferred onward. The YSRCP has rejected all the allegations, calling them baseless.
