Former Chief Minister Jagan Mohan Reddy’s liquor policy was deliberately designed to boost party funding, according to shocking revelations made by Raj Kasi Reddy. The CID has submitted a remand report to the court outlining the massive corruption scheme that diverted money through gold purchases, shell companies, and real estate firms.
Raj Kasi Reddy collected monthly bribes of 50-60 crores from liquor suppliers and distilleries, passing the money to Jagan’s circle including OSD Krishna Mohan Reddy, MPs Peddireddy Mithun Reddy, Vijay Sai Reddy, and an associate named Balaji. Investigators confirmed this network collected a staggering 3,200 crores between 2019-2024.
In August 2019, the government introduced a new liquor policy with state-run shops. Key positions were given to trusted officials like IRS officer Vasudev Reddy, who was brought in on deputation as Beverages Corporation MD. A manual supply order system replaced the automated process, giving complete control over the liquor trade.
The syndicate set prices for bribes based on liquor brands – 150 rupees per case for cheap brands like Southern Blue and Nine Horses, 200 for mid-range brands, and up to 600 for premium brands like Teachers. To avoid detection, they used VPN services, virtual numbers, and messaging apps like Signal for communication.
The collected bribes were converted to gold, transferred to shell companies, or moved through organized hawala networks in Mumbai and Delhi. They even manipulated raw material suppliers, paying 3-5 times the actual price and receiving cash kickbacks under the guise of “brand promotion.”
Raj Kasi Reddy’s involvement extended to establishing distilleries and controlling SPY Agro Industries’ bank accounts without permission. The CID report concludes that his actions represented a criminal conspiracy causing enormous losses to the government treasury while generating massive illegal profits.
