What is the liquor scam of Andhra Pradesh? (Andhra Pradesh?) 

Andhra Pradesh: The biggest arrest so far has been made in the infamous Andhra Pradesh     (Andhra Pradesh?)   liquor scam that took place during the Chief Minister’s tenure of YS Jagan Mohan Reddy. The Special Investigation Team (SIT) formed to investigate the case has arrested YSRCP MP Mithun Reddy. Mithun Reddy appeared at the SIT office in Vijayawada on Saturday morning. He also joined the investigation. After initial questioning, the MP was taken into custody by SIT officials.

Produced before magistrate

The SIT questioned Mithun Reddy for about seven hours and then formally arrested him at its office. He will be produced before the magistrate soon after the medical examination. This is the most high-profile arrest so far in this case. It is expected to have a significant impact as the investigation continues. This arrest comes soon after Mithun Reddy was denied anticipatory bail by the Andhra Pradesh High Court and the Supreme Court of India.

Know what are the allegations against Mithun Reddy?
The main allegation against Mithun Reddy is that he played a key role in changing the liquor payment system from automated to manual mode, which allegedly led to massive corruption in the financial process. YSR Congress Party MP PV Mithun Reddy has been arrested by the Special Investigation Team (SIT) in connection with the alleged Rs 3,200 crore Andhra Pradesh liquor scam. Reddy, accused number 4 (A4) in the case, was taken into custody after nearly seven hours of intense questioning at the SIT office in Vijayawada on Saturday.

The SIT questioned the Rajampeta Lok Sabha MP on several key aspects of the scam, including alleged liquor policy manipulation, financial transactions with shell companies and undeclared meetings with prominent individuals.

What is Andhra Pradesh liquor scam?

According to a Special Investigation Team (SIT) probing the case, a major liquor scam worth Rs 3,200 crore allegedly took place during the tenure of the YSR Congress Party (YSRCP) government in Andhra Pradesh. The police have accused KC Reddy, Raj Shekhar Reddy, former IT advisor to then Chief Minister YS Jagan Mohan Reddy, of the scam.

Raj Shekhar arrested

The SIT arrested Raj Shekhar on April 21 this year at the Hyderabad airport. Raj Shekhar and his associates, including senior YSRCP leaders and bureaucrats, are accused of misusing the state’s liquor policy to replace popular liquor brands with lesser-known brands in return for receiving bribes worth Rs 3,200 crore.

With an elaborate plan to receive bribes of Rs 50 to 60 crore per month, Raj Shekhar and others ensured that orders were placed regularly to companies from which pre-determined bribes were received. Raj Shekhar is not the only big name to have surfaced in the case.

Names also involved in the case

Raj Shekhar’s remand report includes prominent names like former Rajya Sabha MP Y Vijayasai Reddy, a close aide of Jagan earlier, who also quit his Parliament membership and politics in January. Another big name is YSRCP MP from Rajampet PV Midhun Reddy, son of former Andhra Pradesh minister Peddireddy Ramachandra Reddy who has been arrested.

What was the liquor policy of YSRCP?

During the 2019 assembly election campaign, Jagan had promised to implement prohibition in the state in a phased manner. Soon after coming to power, in October 2019, the YSRCP came up with a new liquor policy, which they claimed was in line with this promise. The government decided to take control of around 3,500 liquor shops in the state. The opening hours of the shops were reduced and prices were increased to reduce alcohol consumption.

SEB set up
The liquor business was handed over to the fully government-owned Andhra Pradesh State Beverages Corporation Limited (APSBCL). The government also set up a Special Enforcement Bureau (SEB) under the Prohibition and Excise Department to curb alcohol smuggling and illicit liquor manufacturing.

Prices had to be cut in the year 2021

Over time, popular brands gradually disappeared from liquor shops and were replaced by new unknown brands. The sharp increase in prices led to large-scale attempts to smuggle liquor from neighboring states Karnataka and Telangana, which forced the government to cut prices in 2021.