ED Attaches Rs 441 Crore Assets In Andhra Liquor Case, Probe Traces Rs 1,048 Crore Kickback Trail

Last Updated:March 06, 2026, 21:46 IST

These payments were reportedly made in multiple forms, including cash, gold and through operational control of certain distilleries.

In a major development, the enforcement directorate (ED) has attached movable and immovable properties worth Rs 441.63 crore in connection with its money laundering probe into the alleged liquor procurement and distribution scam in Andhra Pradesh, the directorate said in a statement.

The investigation has so far traced a money trail of Rs 1,048.45 crore allegedly collected from distilleries in the form of kickbacks. These payments were reportedly made in multiple forms, including cash, gold and through operational control of certain distilleries. Financial gains were also generated through the transport of liquor.

The attached assets belong to key accused and their associates, including Kessireddy Rajasekhara Reddy, members of his family, associates of Booneti Chanakya and relatives and entities linked to Donthireddy Vasudeva Reddy.

According to the agency, the attached assets include bank balances, fixed deposits, land parcels and other immovable properties allegedly linked to the proceeds of crime generated through the liquor syndicate. The action has been taken under the Prevention of Money Laundering Act (PMLA), 2002.

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The ED initiated its investigation on the basis of an FIR registered by the Andhra Pradesh CID under various sections of the IPC relating to criminal conspiracy, cheating and fraud.

The case pertains to alleged irregularities in the state’s liquor procurement and distribution system that reportedly caused losses running into thousands of crores to the state exchequer.

Investigators said that prior to 2019, the liquor trade in the state, operated through an automated and transparent digital tracking system that monitored procurement, supply and sales, leaving a verifiable electronic audit trail.

However, after the change in the state government in 2019, the system was allegedly replaced with a manual process, giving officers of the Andhra Pradesh State Beverages Corporation Limited (APSBCL) wide discretionary powers in issuing Orders for Supply (OFS).

According to the directorate, this manual OFS regime was allegedly used to selectively favour certain liquor brands while marginalising or excluding established brands from the market. The investigation has also pointed to the introduction of ‘similar sounding brands’ with artificially inflated base prices. The inflated pricing structure allegedly enabled distilleries manufacturing such brands to generate surplus margins, which were then used to meet illegal monetary demands.

The ED has alleged that distilleries were compelled to pay kickbacks ranging between 15% and 20% of the basic price per case as a precondition for obtaining OFS approvals. Manufacturers who did not comply were allegedly subjected to coercive measures such as rejection of supply orders or withholding of legitimate payments, the probe further revealed

According to the agency, communications relating to the demand and collection of kickbacks were carried out through encrypted VOIP calls and messaging applications such as Signal to conceal the identities and roles of those involved.

The proceeds of crime were allegedly used to acquire immovable properties and for personal enrichment of members of the alleged liquor syndicate and their associates. Sources in ED also said a significant portion of the funds is suspected to have been concealed or diverted by the accused.

News india ED Attaches Rs 441 Crore Assets In Andhra Liquor Case, Probe Traces Rs 1,048 Crore Kickback Trail

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