During YS Jagan’s rule, YSRCP liquor syndicate members collected kilograms of gold using their political power. The SIT investigation revealed that distilleries handed over gold worth hundreds of crores as bribes to liquor suppliers.
The scandal came to light when police searched former Beverages Corporation MD Vasudev Reddy’s vehicle and associates’ homes, finding gold purchase receipts. While ordinary people buy gold in grams or tolas, these receipts show purchases by the kilogram. Further investigation of distillery records confirmed massive gold purchases.
Investigators discovered this was a clever plan by the liquor syndicate to receive bribes. Records showed suspicious transactions between bullion traders and gold shops worth 300-400 crore rupees. A government lawyer informed the Supreme Court that the YSRCP mafia bought gold worth 400 crores, but an official believes the amount could reach 1,000 crores.
The YS Jagan government changed liquor policies solely to collect bribes and commissions. Distilleries were threatened that they would receive orders only if they paid kickbacks. Popular brands that refused to pay were pushed out of the market, while unknown private brands with inflated prices were introduced.
The syndicate demanded about 20% of the basic price as bribes on each case of liquor. They placed their people in distilleries to maintain control. Special agents appointed by Raju K.C. Reddy collected these bribes every five days. To avoid handling large cash amounts, they demanded payment partly in gold, which Boneti Chanakya alias Prakash delivered to syndicate members.
The syndicate created a paper trail showing legitimate gold purchases with GST invoices while secretly channelling bribes. Mumbai-based Tilak Nagar Industries, which supplied Mansion House brandy, paid about 280 crores in bribes, with 196 crores in gold form through transactions with various jewellery shops.
The investigation continues into how much more gold was collected from other distilleries and whether the gold was smuggled abroad, as its value has more than doubled since 2019.
