ANDHRA PRADESH: YSRCP MP Remanded in Rs 3,500 Cr Liquor Scam Case
Judicial Remand Ordered
On July 20, 2025, the Vijayawada Anti-Corruption Bureau (ACB) court remanded YSR Congress Party (YSRCP) MP Peddireddy Venkata Midhun Reddy to judicial custody until August 1. Named as the fourth accused in a high-profile Rs 3,500 crore liquor scam, Reddy was ordered to be transferred to Rajamahendravaram Central Jail. The court’s decision followed intense arguments, marking a pivotal development in the ongoing investigation.
Allegations and Court Proceedings
Special Public Prosecutor Posani Venkateshwarlu, representing the Special Investigation Team (SIT)/Crime Investigation Department (CID), emphasized the gravity of the alleged scam, accusing Reddy of orchestrating policy changes to favor specific distilleries for kickbacks. Despite Reddy’s claim of political vendetta, Magistrate P. Bhaskara Rao upheld the remand, ensuring compliance with jail regulations for the MP’s facilities. Reddy was permitted to carry necessary medications.
Health and Security Concerns
Post-arrest, Reddy underwent medical evaluations, including two ECG tests, which showed fluctuations, though doctors issued a fitness certificate. His counsel, T. Nagarjuna Reddy, requested VIP barracks, citing his Y-category security status, and proposed Nellore Central Jail or Rajamahendravaram for better facilities. The lawyer also sought provisions for private hospital medical tests and additional family meetings.
YSRCP Leaders’ Response
The court premises in Vijayawada’s Governorpet witnessed heightened tension as YSRCP leaders, including Lella Appireddy and Malladi Vishnu, rallied in support of Reddy. Security was tightened, with police restricting access, leading to heated exchanges. Only select leaders were allowed inside, prompting complaints to the magistrate about restricted entry.
Chaos at Rajamahendravaram Jail
Reddy’s transfer to Rajamahendravaram Central Jail sparked further unrest. YSRCP youth leader Jakkampudi Ganesh and supporters clashed with police at the jail’s barricades, raising slogans. Prominent figures like former minister Chelluboyana Venugopalakrishna and MLC Talashila Raghuram joined the protest, briefly defying police orders before dispersing.
Political Implications
The SIT alleges Reddy influenced liquor procurement policies during 2019–2024, causing significant financial losses. The arrest, following the rejection of his anticipatory bail by the Andhra Pradesh High Court and Supreme Court, has intensified accusations of political vendetta from YSRCP leaders. The case continues to unfold, with potential ramifications for Andhra Pradesh’s political landscape.