The Andhra Pradesh liquor scam has taken a dramatic turn as over a dozen liquor manufacturing and distribution firms, including prominent names like Tilaknagar Industries and SNJ Sugars, have come under scrutiny for their alleged involvement in a multi-crore corruption scandal. Investigative agencies, including the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI), are actively probing a wide-ranging conspiracy that allegedly manipulated the state’s liquor policy to benefit a select group of firms in return for massive kickbacks.
Background of the Scam
The scam revolves around manipulations in Andhra Pradesh’s liquor procurement and distribution policies, which were allegedly designed to allow certain firms to monopolize the market. The YSRCP-led state government had introduced a new liquor policy in 2019, claiming to curb consumption by reducing the number of retail liquor outlets and allowing the state to directly control the supply chain through the AP State Beverages Corporation Limited (APSBCL).
However, evidence now suggests that this policy was used as a smokescreen to eliminate competition and establish a liquor syndicate that favored a handful of suppliers and manufacturers.
Key Companies Under Scanner
Among the many companies now under ED and CBI radar are:
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Tilaknagar Industries Ltd – A well-known Maharashtra-based liquor manufacturer known for brands like Mansion House Brandy.
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SNJ Sugars and Products Ltd – Based in Tamil Nadu, SNJ is a prominent player in both sugar production and the liquor industry.
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Other notable names reportedly include local Andhra and Telangana-based distributors and shell companies created to funnel money.
These firms are alleged to have formed a cartel and gained preferential treatment in allocation of tenders, licenses, and supply orders through corrupt means and political connections.
How the Scam Worked
According to preliminary findings, the modus operandi of the liquor scam included:
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Bid-rigging and Tender Manipulation: Select companies were allegedly awarded tenders under manipulated conditions, excluding legitimate competitors.
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Kickbacks and Bribes: In return for these favors, political middlemen and bureaucrats allegedly received substantial financial rewards through shell companies and benami accounts.
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Over-invoicing and Money Laundering: Firms allegedly inflated their procurement and distribution bills, using the excess funds to pay bribes and route black money.
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Political Nexus: Investigations point to the involvement of political operatives with links to the ruling party in Andhra Pradesh.
Enforcement Directorate’s Action
The ED has registered a case under the Prevention of Money Laundering Act (PMLA) and conducted multiple search and seizure operations at offices and residences connected to liquor firms and middlemen. Digital records, hard drives, and financial documents have been confiscated.
In one raid, unaccounted cash, property documents, and records of suspicious financial transactions amounting to hundreds of crores of rupees were recovered. The ED is now tracking money trails that may lead to higher-ups in the political ecosystem.
Political Fallout
The issue has quickly taken a political turn. Opposition parties, including the Telugu Desam Party (TDP) and Bharatiya Janata Party (BJP), have demanded a high-level judicial inquiry into the alleged scam, accusing the YSRCP government of shielding corrupt officials and businessmen.
YSRCP leaders have denied wrongdoing and dismissed the investigations as politically motivated vendettas aimed at tarnishing the state’s governance model.
Impact on Liquor Firms
The scandal has led to:
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Sharp stock market reactions – Shares of Tilaknagar Industries and SNJ Sugars saw volatility after news of their alleged involvement broke.
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Potential license cancellations – If proven guilty, these companies could face blacklisting by not just Andhra Pradesh, but other states as well.
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Damage to brand reputation – Consumer perception is at risk, especially for firms associated with mass-market brands.
What Lies Ahead
The Andhra Pradesh liquor scam is likely to have far-reaching consequences. With the ED and CBI intensifying their probes, more names are expected to emerge, possibly implicating senior bureaucrats and political figures. If proven, this scandal could become one of India’s largest liquor-related corruption cases.
For now, all eyes are on the court proceedings and the next phase of investigations, which will determine whether this is a case of regulatory failure—or something far more deeply entrenched in the system.
