ANDHRA PRADESH: AP Liquor Scam: ED’s 5-State Raids Unravel Fraud
A major escalation in the ₹3,500 crore Andhra Pradesh liquor scam unfolded on September 18, 2025, as the Enforcement Directorate launched coordinated searches across five states.
Teams from the ED’s Hyderabad unit targeted 20 locations in Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, and Delhi-NCR, zeroing in on offices and residences of implicated individuals and firms.
These operations aim to trace kickbacks allegedly routed through fake invoices and shell companies during the YSRCP government’s tenure from 2019 to 2024.
Early findings point to inflated billing practices that siphoned off state revenues, with digital records and financial trails under intense review.
Focus on Kickback Networks
Investigators are scrutinizing entities accused of facilitating illicit payments in the liquor procurement chain.
The raids build on prior evidence of money laundering, including hawala transfers and diversions to real estate and election funding.
Key premises hit include those tied to directors of shell outfits like Nautical Green Energy and Ebot Energy Systems, where documents on fund flows are being seized.
This nationwide net reflects the scam’s sprawling footprint beyond Andhra borders.
SIT’s Parallel Push and Arrests
Complementing the ED’s efforts, the Andhra Pradesh Special Investigation Team has charged 29 people and 19 companies to date.
Twelve arrests have followed, with eight still in custody, including Chevireddy Bhaskara Reddy and Venkatesh Naidu.
Recent bail grants for four, Dhanunjaya Reddy, Krishnamohan Reddy, Balaji Govindappa, and Paila Dilip haven’t slowed momentum.
The SIT’s recovery of ₹11 crore in cash from a Telangana farmhouse last month has fueled deeper dives into hidden assets.
Implications for Accountability
This dual-agency crackdown underscores systemic flaws in liquor policy enforcement, estimated to have caused over ₹3,200 crore in undue gains.
As evidence mounts, it pressures for reforms in procurement oversight.
The ED’s involvement under the Prevention of Money Laundering Act could lead to asset freezes and further summons.
With hearings ongoing, the scam’s political ripples continue to widen across the region.