The Enforcement Directorate's Hyderabad unit has issued a summons to former Member of Parliament V Vijay Sai Reddy. He must appear before the agency on January 22. This action connects directly to the ongoing investigation into the alleged Andhra Pradesh liquor scam.
Questioning Scheduled for January 22
Sources within the agency confirm that Sai Reddy will face detailed questioning. The probe focuses on the liquor policy implemented in Andhra Pradesh from 2019 to 2024. Officials are investigating under the Prevention of Money Laundering Act. They are examining allegations of large-scale kickbacks and significant diversion of funds.
Parallel Investigation by Andhra Police SIT
A special investigation team from Andhra Pradesh police is also probing this case simultaneously. According to the SIT, the so-called 'new liquor policy' allegedly forced suppliers to pay kickbacks. These payments reportedly ranged from 15% to 20% of contract values.
Established liquor brands faced sidelining for refusing to make such payments. Investigators state that the automated procurement system was replaced with manual approvals. This change enabled manipulation of supply orders.
Allegations of Shell Entities and Bogus Transactions
The ED alleges that shell distilleries were floated to secure inflated supply volumes. Funds were then routed through bogus transactions. Agency officials claim that eligibility norms were manipulated. Suppliers faced coercion into making payments.
Kickbacks were allegedly generated through multiple methods. These include fake vendor payments, inflated invoices, and transactions involving shell entities. Proceeds were reportedly diverted for various purposes. Election funding, personal gains, and overseas transfers are among the alleged destinations.
Fund Diversion and Bogus Payments
According to the agency, a portion of payments made by the Andhra Pradesh State Beverages Corporation Limited to liquor suppliers was diverted. These funds went to various entities under the guise of payments for goods or services. Investigators found several such transactions to be either bogus or significantly inflated.
Further allegations involve routing funds to jewellers. The purpose was to acquire gold and cash. These assets were then allegedly handed over to accused persons.
Sixteen Firms Under Investigation
The case originates from SIT findings involving sixteen liquor companies. These firms allegedly paid bribes between 2019 and 2024. The goal was to secure supply orders from APSBCL.
These contracts held a total value of ₹10,835 crore. They formed part of a larger ₹23,000 crore supply order issued during the previous YSRC government's tenure. The SIT estimates that more than ₹3,500 crore in bribes were routed through layered transactions.
The investigation continues to unfold as both the ED and the SIT pursue their parallel probes. The summons to the former MP marks a significant development in this high-profile case.
