Andhra ‘Liquor Scam’ Case: ACB Court Grants Bail To YSRCP MP Midhun Reddy

YSRCP MP Mithun Reddy, lodged in Rajahmundry jail for the past 71 days in connection with the Andhra Pradesh liquor scam, was on Monday granted bail by the ACB court.

The court directed him to furnish 2 sureties of ₹2 lakh each and appear before the investigating authorities twice a week. Arrested on July 20 and listed as Accused No. 4 (A4) in the case, Reddy is likely to walk out of jail tomorrow.

Origins Of Liquor Scam

The alleged conspiracy dates back to 2019, when Satya Prasad, a government officer, approached Reddy at his Tirupati residence and offered to cooperate in return for a promised IAS promotion.

A key meeting followed on October 13, 2019, at the Hyderabad residence of YSRCP leader Vijayasai Reddy. According to investigators, members calculated they could earn around ₹50–60 crore per month in commissions and kickbacks from liquor distilleries and suppliers.

The accused allegedly conspired to form a syndicate that would bypass the automatic order for supply (OFS) system and instead control supply, depots, and sales at Government Retail Outlets (GROs).

Syndicate’s Grip On Liquor Policy

Investigators allege the syndicate, with Reddy playing a central role, effectively dictated Andhra Pradesh State Beverages Corporation Limited (APSBCL) policies. This included:

Setting prices and discounts,

Approving brands,

Pushing “similar-sounding brands” to inflate prices and extract illicit gains.

Only those companies and liquor brands willing to pay hefty commissions were favoured, causing direct revenue losses to the state exchequer.

Mithun Reddy’s Alleged Role

According to the charge sheet, Reddy was a core conspirator from inception to execution. His alleged role included:

Policy Manipulation – Orchestrated changes in APSBCL policies to benefit the syndicate.

Influencing Officials – Lured Satya Prasad (Accused No. 3) with a promise of Non-SCS IAS promotion and ensured his appointment as Special Officer to execute the scheme.

Direct Involvement – Influenced APSBCL officials, participated in planning meetings, and issued instructions that led to large-scale financial loss.

Money Trail – Routed kickbacks through entities like SPY Agro, Sanhoc Labs, and Dcart Logistics, with at least ₹5 crore traced to PLR Projects, a company linked to his family.

Financial Ties – Declared liabilities of ₹47.74 crore to PLR Projects, further tying him to the money flow.

Election Funding – Investigators allege the illicit funds were used during the 2024 General Elections across several Andhra Pradesh constituencies for political gains.

With bail conditions requiring regular appearances before investigators, Reddy’s release does not end his legal troubles. The probe continues into the multi-crore liquor scam, which authorities say drained public revenue while enriching the syndicate through kickbacks and policy manipulation.