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Wednesday, September 17, 2025

Andhra Liquor Scam: Ex-CM Y.S. Jagan Mohan Reddy Allegedly Received Kickbacks, Says CID Report

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In a significant revelation that could shake the political landscape of Andhra Pradesh, the Criminal Investigation Department (CID) has named former Chief Minister Y.S. Jagan Mohan Reddy as one of the key beneficiaries of alleged kickbacks in the Andhra liquor scam. The accusations were outlined in a remand report submitted by the CID in connection with the arrest of several individuals, including political aides and liquor industry executives.

The report claims that distillery companies paid illegal commissions in exchange for favorable policies and business advantages under the previous YSR Congress Party (YSRCP) government.


Background of the Liquor Scam

The Andhra liquor scam pertains to allegations of widespread corruption and manipulation in the state’s liquor procurement and distribution system during the tenure of the YSRCP government. It is alleged that liquor manufacturers and distributors paid massive kickbacks to politicians and bureaucrats to receive contracts, permissions, and tax waivers.

According to the CID, these illicit transactions were part of a systematic arrangement involving high-ranking political figures, bureaucrats, and private companies. The scam is estimated to involve hundreds of crores in unaccounted money.


CID’s Remand Report: Key Accusations

The CID’s remand report, submitted in court as part of its ongoing investigation, includes the following critical claims:

  • Y.S. Jagan Mohan Reddy, the former Chief Minister, was allegedly one of the political figures who received financial benefits from distillery companies. These payments were reportedly routed through intermediaries and benami accounts.

  • The agency has recorded digital communications, bank transactions, and witness statements linking the flow of money to individuals close to the former Chief Minister.

  • Several liquor company executives, including owners of distilleries, allegedly colluded with government officials to inflate procurement rates, manipulate tenders, and bypass standard regulatory processes.

  • A portion of the alleged kickbacks was reportedly used for political funding and personal enrichment of select individuals, including sitting and former government functionaries.


Arrests and Detentions

The CID has already arrested several individuals as part of its probe, including:

  • Political aides of senior YSRCP leaders

  • Promoters and directors of distillery and liquor distribution companies

  • Middlemen who allegedly facilitated financial transfers and deals

The agency has stated that further arrests are likely as the investigation progresses and more documents are seized.


Jagan’s Response and Political Reaction

As of now, former Chief Minister Jagan Mohan Reddy has not issued an official response to the allegations. However, YSR Congress Party leaders have categorically denied the charges, calling the CID investigation a political vendetta orchestrated by the newly elected Telugu Desam Party (TDP) government led by Chief Minister N. Chandrababu Naidu.

YSRCP spokespersons argue that the investigation is an attempt to discredit the party’s leadership ahead of upcoming local body elections and to divert attention from governance issues under the new administration.

On the other hand, TDP leaders maintain that the probe is based on solid evidence and is part of a broader effort to clean up corruption in the state. They claim that the scale of the liquor scam is massive and requires full accountability from all involved, irrespective of political stature.


Legal and Political Implications

If substantiated, the allegations against a former Chief Minister could have far-reaching consequences:

  • Criminal charges, including money laundering, criminal conspiracy, and corruption under the Prevention of Corruption Act

  • Possible disqualification or restrictions from contesting future elections

  • Damage to the YSRCP’s public image and credibility

The CID has stated that it will also approach the Enforcement Directorate (ED) and other central agencies if evidence of money laundering or interstate transactions is confirmed.

The naming of Y.S. Jagan Mohan Reddy in the CID’s remand report adds a dramatic twist to the unfolding liquor scam in Andhra Pradesh. As the investigation continues, the political temperature in the state is expected to rise sharply, with both ruling and opposition parties gearing up for a prolonged legal and electoral battle.

Whether these allegations will lead to a conviction or fade as another political controversy will depend on the transparency, speed, and integrity of the judicial process in the coming months.

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