The Special Investigation Team (SIT) focuses on identifying the ultimate beneficiaries in the liquor scam worth thousands of crores during the YCP rule. The investigation reveals that not only was money looted through fake companies and non-existent entities, but elaborate schemes were also used to hide the final recipients of these funds.
The SIT has uncovered that the scam involved multiple layers of corruption. While some distilleries received bribes for securing bulk orders, others were directly controlled by the power players. Thousands of crores were paid to these distilleries through APSBCL, which was then transferred to fictitious companies that didn’t exist. The SIT has identified this as a major money laundering operation.
Adda Distilleries Private Limited emerged just two months after the new liquor policy was implemented in 2019. The SIT found that the Andhra Pradesh CM YS Jagan arranged a working capital loan of 60 crores through the Aravindo Group. The main accused, Raj KC Reddy, floated this company and ran operations through relatives, including his brother-in-law Muppidi Avinash Reddy.
Despite having no proper infrastructure or equipment for liquor production, Adda Distilleries received 732 crores from APSPDCL between May 2020 and December 2022. Similarly, Leela Distilleries received 454 crores, Yuva Distilleries 224 crores, and PV Spirits 271 crores. Other companies like MS Biotech and Sarvani Alco received 851 crores and 894 crores, respectively.
The investigation revealed that the Aravindo Group provided a 45 crore loan to SPY Agro Industries on Jagan’s orders. Additionally, the SIT found that 5 crores were deposited into accounts of PLR Projects Private Limited, owned by YCP MP Mithun Reddy’s family.
Tilak Nagar Industries, which received orders worth 1,472 crores, allegedly paid bribes worth 300 crores in gold to government officials. The SIT is now investigating who received this gold and how it was distributed.
