ED searches money-laundering intermediaries in Andhra Pradesh liquor scam

HYDERABAD: The Enforcement Directorate (ED) on Thursday carried out searches across India including Hyderabad, Delhi NCR, Tamilnadu and Karnataka s in connection with money-laundering intermediaries allegedly involved in the Andhra Pradesh liquor scam. The action follows the predicate offence registered by the state Special Investigation Team (SIT), which had earlier flagged large-scale diversion of funds.Officials said the searches targeted intermediaries suspected to have played a key role in routing nearly ₹3,500 crore through benami firms, shell entities and hawala networks.The ED has recorded statements from multiple distilleries said to be linked to the scam and questioned the prime accused, Raj Kasireddy, currently lodged in jail, as it traces the flow of illicit funds and the laundering routes used to channel the suspected proceeds of crime.

No politicians are covered during ED search today.The case stems from allegations by the SIT of the AP police, which claims that 16 liquor companies paid ₹1,677 crore in bribes to secure supply orders from the Andhra Pradesh State Beverages Corporation Limited (APSBCL) between 2019 and 2024. In return, these companies reportedly obtained contracts worth ₹10,835 crore.SIT data reveals that during the former YSRCP government, APSBCL issued supply orders worth ₹23,000 crore, with more than 90% of them going to just 40 of the 111 registered liquor companies.

The SIT estimates that over ₹3,500 crore in bribes was funnelled through benami firms, shell companies and hawala operators.Investigators allege that once APSBCL released payments, distilleries diverted large sums under the guise of raw-material purchases and brand promotions. These funds were allegedly withdrawn in cash and handed over as kickbacks. Acting on the SIT’s predicate offence, the ED invoked the Prevention of Money Laundering Act (PMLA) and summoned several accused firms and individuals for questioning.