During questioning by the Special Investigation Team (SIT), the main accused, Raj Kasireddy, made startling revelations about the Andhra Pradesh liquor scam. He reportedly admitted that former Chief Minister YS Jagan Mohan Reddy personally tasked him with creating a liquor policy that would generate substantial funds for the YSRCP party.

During his seven-day custody period, SIT officials questioned Reddy for nearly eight hours on Saturday, from 9 AM to 5 PM. When asked about his involvement with the Excise Department despite being an IT advisor, Reddy initially tried to deny any connection but eventually confessed when presented with evidence.

Sources indicate Raj Kasireddy acknowledged attending meetings on Jagan’s instructions to design the liquor policy. However, he remained tight-lipped when questioned about how the money collected from liquor supply companies and distilleries reached government representatives.

When investigators asked about the monthly kickbacks of Rs 50-60 crores allegedly collected from liquor companies, Reddy reportedly refused to answer. The SIT mentioned their investigation found money was channelled to Jagan’s brother YS Anil Reddy, Bharathi Cements Director, YSRCP MP Peddireddy Mithun Reddy, and Vijayasai Reddy.

Investigators revealed that liquor companies transferred funds through organised hawala networks in Mumbai and Delhi to shell companies controlled by the syndicate. When questioned about these connections, Raj KC Reddy claimed he merely followed orders from higher-ups without knowing specific details.

The SIT has also taken Booneti Chanakya alias Prakash into custody, who reportedly played a crucial role in collecting bribes. Officials are separately questioning both suspects about the conspiracy behind the liquor policy design, its implementation, and the money laundering operations through shell companies and hawala transactions.