Vijayasai Reddy appears before ED

Former Rajya Sabha member V. Vijayasai Reddy on Thursday appeared before the Enforcement Directorate for questioning in the multi-crore liquor scam case.

The former leader of YSR Congress Party (YSRCP) appeared before the Enforcement Directorate (ED) officials at the agency's regional office in Hyderabad.

The ED is conducting a money laundering investigation in the Rs 3,500 crore liquor "scam", which allegedly occurred during the YSRCP rule.

The ED has taken up the probe based on an FIR issued by the Andhra Pradesh Police.

Vijayasai Reddy, who quit YSRCP and also resigned as Rajya Sabha member in January last year, was questioned twice by the Special Investigation Team (SIT) of Andhra Pradesh police, which is probing the case.

The ED has summoned YSRCP MP, PV Midhun Reddy, for questioning on Friday (January 23).

The SIT had arrested Midhun Reddy on July 19. The Rajampet MP, who is one of the accused in the case, was released on bail on September 30.

The case relates to the multi-crore scandal allegedly committed by manipulating excise policy and receiving kickbacks from distilleries.

After the TDP-led NDA came to power in 2024, a case was registered at the CID Police Station in Mangalagiri under relevant Sections of the IPC and the Prevention of Corruption Act, 1988.

The Criminal Investigation Department (CID) initially conducted an investigation following a complaint by an official of the Excise Department. Later, the government constituted the SIT, headed by NTR District Commissioner of Police S.V. Rajashekhar Babu, to probe the case.

The SIT found large-scale irregularities and fund misappropriation in the liquor policy implemented during 2019-24.

Investigators reportedly uncovered a kickback network involving nearly Rs 3,500 crore siphoned off over five years.

There are allegations that the YSR Congress Party leaders encouraged the new liquor policy, floated new brands, received kickbacks from the distillery companies, causing huge losses to the government.

The SIT has named several accused in the case, including MPs, retired IAS officers, distillery companies and shell company owners.