AP liquor case: ED raids at premises of five accused

Stepping up its investigation into the multi-crore liquor scam in Andhra Pradesh, the Enforcement Directorate (ED) on Friday conducted searches at the premises of six of the accused.

The ED officials have been conducting simultaneous searches since early Friday morning at the houses, offices and other premises of YSR Congress Party leader and former MLA, Chevireddy Bhaskar Reddy, main accused Kesireddy Rajasekhara Reddy, Bharati Cements director Balaji Govindappa, Krishna Mohan and Dhanunjaya Reddy in Hyderabad, Vijayawada and Tirupati.

The Central agency is conducting the searches on the basis of the report of the Special Investigation team (SIT).

On March 9, the ED officials had questioned four accused including Krishna Mohan and Dhanunjaya Reddy.

Krishna Mohan is the former Officer on Special Duty (OSD) of then Chief Minister Y.S. Jagan Mohan Reddy while Dhanunjaya Reddy served as secretary in the Chief Minister’s Office (CMO).

The accused were questioned three days after the ED attached movable and immovable properties worth Rs 441.63 crore belonging to Kesireddy Rajasekhara Reddy, his family members and related entities; Booneti Chanakya and his related entities; relatives and entities of Donthireddy Vasudeva Reddy; and other persons and entities under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The Central agency initiated the investigation based on an FIR registered by the CID, Andhra Pradesh, on the complaint of the Principal Secretary to the Government of Andhra Pradesh, for loss to the Government exchequer to the tune of Rs 4,000 crore.

According to the ED, its investigations revealed that physical cash kickbacks were collected and stored at multiple locations in Hyderabad, from where they were subsequently moved, distributed, or disposed of by designated cash handlers of the syndicate.

The ED investigation has so far revealed a money trail of Rs 1048.45 crore in the form of kickbacks, which several distilleries were compelled to pay in the form of cash, gold, etc as well as in the form of control and operation of some distilleries by the liquor syndicate and also in the form of financial gains derived from transport of liquor.

The proceeds of crime were allegedly used for the purchase of immovable properties and personal enrichment of the members of the liquor syndicate and their associates.

According to the ED, a substantial portion of the Proceeds of Crime has been found to be concealed or dissipated by the accused persons.