The Andhra Pradesh liquor scam has taken a serious turn with the Special Investigation Team (SIT) naming YSR Congress Party MP P.V. Mithun Reddy as the central figure in a wide-reaching conspiracy that allegedly caused massive financial losses to the state exchequer. In its detailed 28-page remand report submitted to the ACB Court, the SIT outlined how Mithun Reddy played a key role in shaping liquor policy, influencing government appointments, and managing the illegal flow of money through fake companies and hawala transactions.
According to the SIT, Mithun Reddy personally oversaw a money trail amounting to ₹27 crore. These funds were funnelled through shell companies and hawala routes to avoid detection. A significant portion of this money, ₹15 crore, was allegedly transferred to PLR Projects Pvt. Ltd., a company closely linked to Mithun Reddy’s family. Another ₹25 crore was routed through Dear Logistics, which is also connected to his close associates. These transactions were confirmed through bank statements, financial documents, and other digital evidence.
The report explains how Mithun Reddy manipulated the Andhra Pradesh State Beverages Corporation Limited (APSBCL) policies following the 2019 assembly elections. While the government introduced a new excise policy under the guise of liquor prohibition, it effectively centralized procurement and distribution, creating an environment where suppliers were forced to pay hefty commissions to gain access to Government Retail Outlets (GROs). The SIT estimates that the accused earned nearly ₹50–₹60 crore every month in kickbacks from various distilleries and suppliers.
A critical part of the conspiracy involved the appointment of D. Satya Prasad as Special Officer in APSBCL. The SIT revealed that Mithun Reddy had promised him a Non-Cadre IAS promotion in 2023 in return for cooperating with the scam. Satya Prasad was instrumental in controlling liquor supply and ensuring that only companies willing to pay bribes received supply orders. This helped the syndicate bypass the automatic order system and create a monopoly-like control over liquor sales in the state.
Further investigations uncovered the formation of Adan Distilleries Pvt. Ltd. in 2020, a company that had no distillery of its own but still managed to generate ₹732 crore in revenue by entering into sub-lease agreements with existing companies such as SPY and Visakha Distilleries. The SIT believes that Adan Distilleries was floated as a front to divert scam funds and was promoted by those accused in the case. In another finding, it was revealed that ₹2.5 crore from SPY Distilleries’ accounts was transferred to Sanhoc Labs, raising further suspicions of money laundering.
The grounds for Mithun Reddy’s arrest are serious and detailed. The SIT states that he was not just involved, but was the chief conspirator who planned and executed the scam from start to finish. He influenced government decisions, manipulated appointments, and coordinated closely with other accused individuals to ensure the scam ran smoothly. His meetings with Satya Prasad and other officials were confirmed through call data records and location tracking. He also had financial ties to all the major companies involved, with evidence of liabilities and transactions linking him directly to the kickbacks. These funds were routed using front companies like SPY Agro, Sanhoc Labs, and Dcart Logistics. ₹5 crore of this money was traced back to PLR Projects Pvt. Ltd., further proving his involvement.
Investigators also found that Mithun Reddy used the ill-gotten money during the 2024 General Elections to gain political advantage in various constituencies across Andhra Pradesh. The SIT believes the funds were used to influence voter sentiment, fund campaigns, and tilt the election in favour of certain candidates. This political motive has added a serious dimension to the case, linking financial corruption directly to electoral manipulation.
Mithun Reddy, who is currently in judicial custody, has told the court that he is suffering from blood clots and needs medical treatment. However, SIT lawyers have requested custody for further interrogation, arguing that he may tamper with evidence if not properly monitored.
As the investigation deepens, the case continues to shake the state’s political landscape. The SIT’s findings paint a troubling picture of how policy manipulation, misuse of power, and financial crime were allegedly used not just for personal enrichment but also to influence democratic processes in Andhra Pradesh.
