The liquor scam linked to the tenure of former Chief Minister YS Jagan Mohan Reddy is gaining fresh momentum, with new revelations emerging from the SIT investigation.

Muppidi Avinash Reddy, who was taken into custody, was grilled for nearly seven hours. Officials reportedly asked over 80 questions, focusing on the alleged money laundering network. During the interrogation, he is said to have indicated that the diverted funds were linked to influential figures in the then-ruling YSRCP setup. He also pointed towards Mumbai-based hawala operator Anil Chokhra as a key conduit, while maintaining that he was not aware of the final beneficiaries.

A major part of his statement reportedly revolves around Raj Kesireddy. Avinash Reddy is believed to have told investigators that Kesireddy handled liquor-related decisions after YSRCP came to power in 2019. Acting on his approval, Avinash set up Adan Distilleries, which later received significant orders through APSBCL.

The probe also reveals the use of shell companies. These firms allegedly issued fake invoices under the cover of logistics and packaging services, allowing funds to be diverted without actual transactions. Investigators suspect that records were routinely erased to eliminate audit trails.

Interestingly, Avinash Reddy claimed that he distanced himself after internal disputes. He also stated that he was advised to leave the country as the probe intensified, with assurances that the issue would be settled soon.

With these disclosures, the investigation is now zeroing in on the financial network and decision-making chain behind the scam.