SIT investigations have uncovered that Govindappa Balaji created a specialized network for the liquor scam during YS Jagan YSRCP rule. According to the remand report, Balaji personally designed a unique system to collect bribes from supply companies and distillery deals.

Balaji frequently visited Raju Kesireddy’s office to deliver crucial messages and personally transported collected funds in his vehicles. The investigation revealed he purchased expensive assets and luxury vehicles with the illegally amassed wealth.

The SIT report identifies Balaji as playing a pivotal role in designing and implementing the liquor scam conspiracy. As a key member of the gang, he arranged multiple meetings between liquor supplier representatives and distillery owners. Evidence shows Balaji was central in every stage, from collecting bribes to routing funds through various companies.

The group operated as an organized gang including Govindappa Balaji, main accused Raju KS Reddy, YSRCP MP Mithun Reddy, former YSRCP leaders Vijay Sai Reddy, Krishnamohan Reddy, Avinash Reddy (Raj Kesireddy’s brother-in-law), former SPY Agro Industries director Sarjala Sridhar Reddy, APSBCL’s former MD Vasudevareddy, and special officer Satyaprasad.

High-ranking officials, political leaders and their relatives controlled the entire liquor business from manufacturing to retail sales. The gang manipulated prices, converted automatic ordering to manual systems, changed indent plans, and controlled government liquor shop logins.

This ₹ 3,500+ crore scam squeezed out established liquor brands while favoring companies that paid bribes. When arrested, Balaji became anxious, refused to answer questions properly, and denied involvement despite numerous witness statements proving otherwise.