Bribes, Fake Startups, Hawala: SIT Links ₹3,500-Crore Liquor Scam To Jagan Reddy, YSRCP Network

Last Updated:July 21, 2025, 09:11 IST

The arrest of Mithun Reddy and the scale of financial misappropriation outlined in the chargesheet mark a major escalation in the investigation.

YSRCP leader and former Andhra CM Jagan Mohan Reddy's vehicle. (PTI)

In a chargesheet filed by the Special Investigation Team (SIT), the ₹3,500-crore Andhra Pradesh liquor scam has been linked directly to former Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy and a wide network of YSR Congress Party (YSRCP) leaders, aides, and shell companies. The SIT alleges the scam was not only engineered to enrich top leadership but also to fund election campaigns, amass personal wealth, and transfer funds abroad through hawala channels.

Monthly Bribes

At the core of the scam is Raj Kasireddy (A-1), who allegedly collected ₹50–60 crore every month in bribes from liquor companies and distilleries. These funds were reportedly routed through YSRCP MP P. V. Mithun Reddy (A-4), former YSRCP leader V. Vijayasai Reddy (A-5), and Govindappa Balaji (A-33) — a key financial handler for Y. S. Bharathi Reddy, Jagan’s wife and Director of Bharathi Cements. The SIT claims the money regularly reached Jagan through these intermediaries.

Fake Startups And Shell Companies for Laundering

To disguise the origin and movement of these funds, the accused floated fake startups in electric vehicles, pharma, logistics, and other sectors. Alongside these, a network of dummy companies, forged invoices, fake e-way bills, and non-existent transport firms were used to siphon off money under the cover of legitimate business expenses.

Election Funding And Vote-Buying

A significant portion — between ₹200–300 crore — was allegedly diverted to YSRCP candidates during elections in Chittoor, Prakasam, and Nellore districts. Chevireddy Bhaskar Reddy, a close aide of Jagan, is said to have coordinated the distribution using gunmen, personal assistants, and TUDA vehicles, with ₹8–9 crore moved per batch.

Real Estate, Luxury Spending, Hawala Transfers

According to the chargesheet, proceeds from the scam were used to fund a lavish lifestyle, including high-end vehicles, luxury gifts, foreign trips, and real estate acquisitions under benami names, particularly in Hyderabad. Additionally, a portion of the funds was allegedly transferred overseas via hawala for investment in foreign businesses, including an attempt to enter iron ore mining.

Liquor Orders Manipulated Through Bribes

The SIT notes that liquor companies were coerced into paying ₹150–600 per case in bribes to secure preferential orders under the excise policy introduced post-2019. Those who paid were favoured; others were blacklisted.

Political System ‘Criminalised’, Says SIT

The chargesheet concludes that the entire operation compromised democratic processes, eroded public trust, and criminalised the political system by using illicit money to manipulate elections and build power structures.

The arrest of Mithun Reddy and the scale of financial misappropriation outlined in the chargesheet mark a major escalation in the investigation. Further probes are expected into foreign money trails, benami assets, and election law violations. The revelations have triggered widespread political outrage and calls for broader accountability at the highest levels.

Abhro Banerjee

Covering day-to-day national and international news for the last nine years across print and digital. Associated with News18.com as Chief Sub-Editor since 2022, covering innumerable big and small events, includ...Read More

Covering day-to-day national and international news for the last nine years across print and digital. Associated with News18.com as Chief Sub-Editor since 2022, covering innumerable big and small events, includ...

Read More

Location :

First Published:

News india Bribes, Fake Startups, Hawala: SIT Links ₹3,500-Crore Liquor Scam To Jagan Reddy, YSRCP Network