AP Liquor Scam: ED Summons YSRCP MP Mithun Reddy, Ex-MP Vijayasai Reddy

(MENAFN- AsiaNet News) The Enforcement Directorate (ED) has summoned YSR Congress Party (YSRCP) MP PV Mithun Reddy and former Rajya Sabha MP V Vijayasai Reddy in connection with its ongoing investigation into the alleged multi-crore liquor scam in Andhra Pradesh. Officials said Mithun Reddy, Rajampet Lok Sabha Constituency Member, has been directed to join the probe on January 23, while Vijayasai Reddy has been asked to appear before the agency on January 22 at its Hyderabad zonal office.

Scope of the Investigation

Andhra Pradesh Police arrested Mithun Reddy on July 19, 2025, in connection with the case. He was released on interim bail in September. The case pertains to alleged large-scale irregularities in the state's excise policy, which investigators claim was manipulated to favour select distilleries and liquor suppliers. The ED is examining allegations that the policy changes enabled cartelisation in liquor supply, resulting in inflated prices and the generation of illicit proceeds through kickbacks from distilleries and intermediaries. Officials familiar with the investigation said the ED is probing the alleged money trail linked to the scam, including suspected laundering of proceeds generated from the excise policy manipulation. "Statements of key individuals and examination of financial transactions are part of the ongoing inquiry. ED is also scrutinising the role of various entities and individuals who may have benefitted from the alleged irregularities," the officials said. The ED took up the case based on a First Information Report (FIR) registered earlier by the Andhra Pradesh Police. The FIR reportedly details allegations of corruption, abuse of official position and criminal conspiracy in the implementation of the excise policy during the previous period. On the basis of the FIR, the central agency registered an Enforcement Case Information Report (ECIR) under the provisions of the Prevention of Money Laundering Act (PMLA) to investigate the laundering of alleged proceeds of crime.

Political Fallout and Allegations

The alleged liquor scam has emerged as a major political flashpoint in the state, with opposition parties accusing the ruling dispensation of institutionalising corruption through the excise policy. The YSRCP, however, has denied the allegations, maintaining that the policy was aimed at regulating liquor sales and curbing illegal trade.

Future Course of Action

Andhra Police has alleged that Mithun Reddy, who participated in the meetings with other accused, discussed on the new liquor policy, receiving kickbacks and other irregularities. The summoning of sitting MP Mithun Reddy and senior party leader Vijayasai Reddy marks a significant development in the case, indicating that the ED is widening the scope of its investigation. Officials said further action will depend on the outcome of the questioning and the evidence gathered during the probe. The agency is expected to continue its investigation in the coming weeks as it seeks to establish the alleged flow of illicit funds and identify all those involved in the scam. (ANI) (Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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