Andhra Pradesh: Multi crore liquor scam in YSRCP regime, SIT observes whistle blower Rajat Bhargava alerts ignored, told not to act

VISAKHAPATNAM: The Special Investigation Team (SIT) probing the multi-crore liquor scam in Andhra Pradesh during the YSRCP regime has filed a supplementary charge sheet, unveiling new aspects of the alleged conspiracy.

The charge sheet includes whistleblower alerts, the involvement of consultancy firm KPMG, and a detailed money trail.According to SIT personnel, senior IAS officer Dr Rajat Bhargava, Special Chief Secretary (Revenue), emerged as a key whistleblower. He made several attempts to alert the Chief Minister’s Office (CMO) about malpractices in the excise department. The charge sheet alleges that CMO official Dhananjay Reddy instructed Rajat Bhargava not to take any action.The SIT highlighted the role of the KPMG firm, claiming that it was hired to lend credibility to a flawed excise policy. Officials of KPMG met with the key conspirators several times to prepare a favourable excise policy. The main aspect of the conspiracy—the manual indenting process, as opposed to automated indenting, which favoured certain vendors—was suggested by KPMG.Call data records (CDR) cited in the charge sheet reveal that senior IPS officer PSR Anjaneyalu, former intelligence chief, had 65 calls with a key accused within two hours.

The initial meetings to establish the alleged scheme were reportedly held on October 13-2019 in the presence of YSRCP leaders V Vijay Sai Reddy and Raj Kasireddy Vasudeva Reddy.The SIT's supplementary charge sheet mentions that financial irregularities and proceeds of ill-gotten funds were traced to Raj Kasireddy Vasudeva Reddy. The investigation uncovered 11 parcels of land totaling 30 acres and 25 guntas around Hyderabad in his name.

Additionally, the house of the accused Chanakya was allegedly used as a safe house for money logistics.Financial irregularities linked to Krishna Mohan Reddy, former Officer on Special Duty (OSD) to former Chief Minister YS Jagan Mohan Reddy, have also been cited, along with details of Balaji Govindappa’s role as a key conduit in the scam. The supplementary charge sheet reportedly outlines the entire money trail.The SIT had a preliminary charge sheet on July 19. It had charges against nine companies and seven individuals. A total of 10 individuals and nine companies have so far been named as accused. The SIT has so far arrested 12 accused including YSRCP MP Peddireddy Midhun Reddy.The SIT had stated in the first charge sheet that the accused formed a syndicate to collect commissions or kickbacks from the distillery companies.

They allegedly collected about Rs 3,500 crore from 2019 to 2024.The SIT mentioned that considering the huge magnitude and complexity of the offence having involved large amounts of money coupled with the non-availability of the absconding accused and deliberate action of transferring the ill-gotten money to several other countries and illegally concealing it in covert financial operations, further investigation is necessary.Due to the deliberate design adopted by the accused to conceal the evidence and abscond from investigation, the investigation into the present crime needs to be carried on in the interests of justice. As such, further investigation in order to elicit the remaining accused who are at large, unearth and attach ill-gotten crime proceeds, examine several key witnesses, seize and analyse documents, discover the role played by the identified as well as unidentified accused individuals that have aided in manipulation of the excise policy and were the ultimate beneficiary of crime proceeds, is necessary and required.