Andhra Pradesh Liquor Scam: SIT's Supplementary Chargesheet Reveals Money Trail Involving Officials

Amaravati: The Special Investigation Team (SIT) probing the alleged Rs 3500-crore liquor scam that operated in Andhra Pradesh between 2019 and 2024, has claimed former Chief Minister YS Jagan Mohan Reddy's involvement and named former intelligence chief, DG PSR Anjaneyulu for his alleged role in conspiracy, in its supplementary chargesheet.

The 124-page supplementary chargesheet comprising 16 volumes was filed in the ACB court in Vijayawada on Monday. It details how the then CM turned the liquor business into a major source of illegal earnings by introducing policy changes and making appointments against the recommendations of senior officials. It further alleges that key accused in the case ensured the entire liquor trade operated under their direct control.

New Names In The Dock

The SIT has now filed charges against three more individuals namely former secretary of the Chief Minister's Office (CMO) and retired IAS officer Kalva Dhanunjaya Reddy, Jagan’s OSD Pellakur Krishnamohan Reddy and Bharathi Cements director Govindappa Balaji.

Earlier, charges were filed against seven individuals and nine organisations. Now, with the latest additions, the tally stands at 10 individuals and nine organisations.

The supplementary chargesheet details how hawala transactions, fake directors of shell companies and a well-planned strategy was used to misuse public money. It points out that the then chief advisor to the CM, Ajeya Kallam, recommended appointment of two key accused, Vasudeva Reddy and Satya Prasad.

Key Allegations:

On June 21, 2019, Jagan decided to allow liquor shops to operate until September 30 2019 and ordered identification of personnel to run them as government shops from October 1.

On July 29, 2019, a meeting chaired by Jagan finalised the number of shops, rental terms, infrastructure needs, staff, and transport charges for 3,500 retail liquor shops under the Beverages Corporation.

On 16 August 2019, Jagan approved the note file for these arrangements.

Vasudeva Reddy was appointed as MD of Andhra Pradesh State Beverages Corporation Limited (APSBCL) on Ajeya Kallam’s recommendation, with active intervention to bring him on deputation from the Railways. Despite the then chief secretary LV Subrahmanyam recommending another post, Jagan decided to appoint Vasudeva Reddy as the MD on 13 September 2019.

Next, Satya Prasad was appointed special officer of the APSBCL based on Kallam’s letter to the special chief secretary of Revenue.

Irregularities Ignored

The chargesheet says several irregularities took place in the Beverages Corporation, especially in liquor supply orders. The Special Officer bypassed the MD’s authority in key decisions. Although the Excise Commissioner was informed, no action was taken in 2020.

Former special chief secretary Rajith Bhargava told SIT that CMO officials, Dhanunjaya Reddy and Krishnamohan Reddy, had allegedly pressured him not to act against accused Krishnamohan Reddy and Govindappa Balaji even after irregularities were proven.

Despite memos being issued, the accused did not respond. Rajith Bhargava said he was pressured to backdate orders to legitimise the actions of Vasudeva Reddy and Satya Prasad. The SIT thus concludes that this interference, along with orders to stop issuing memos, prove direct involvement of senior CMO officials in the scam.

Order Supply Files Tampered

Also the SIT claims that the accused had deliberately altered crucial liquor supply order files and destroyed evidence to conceal irregularities.

According to investigators, the accused including Kesireddy Rajasekhar Reddy, Satya Prasad, PSR Anjaneyulu, Vasudeva Reddy, CM Secretary Dhanunjaya Reddy, and OSD Krishnamohan Reddy met on November 2, 2023, in Vaddeswaram to discuss tampering of order supply files and related documents. The SIT says both electronic and documentary evidence are available about this meeting.

Records show that Satya Prasad travelled to Hyderabad to coordinate with Kesireddy. Subsequent meeting were held between January 22 and 30, 2024, in Tadepalli involving Satya Prasad, Vasudeva Reddy, Dhanunjaya Reddy, and Anjaneyulu, with Bhargava and Yadav.

The SIT alleges that the systematic alteration of order supply note files began in 2021 and continued over the years, backed by electronic evidence seized from the accused.

Joining Critical Links

Finally, critical links in the liquor scam were pieced together through call records, WhatsApp chats and cell tower data. Forensic analysis of seized devices has confirmed when and where the accused met and how liquor supply orders were manipulated in exchange for bribes.

Satya Prasad's phone records revealed that liquor indent planning was coordinated with Vasudeva Reddy, with supplies monitored based on bribe payments. Call logs also tied Raj Kesireddy and Vasudeva Reddy directly to Satya Prasad’s liquor dealings.

Analysis of the phone of Raj Kesireddy’s PA Mallesh uncovered conversations with SOM Distilleries & Breweries president Divakaran. Another lead emerged from the restored WhatsApp chats of Pilla Jayaram of Om Sons Limited Distillery, showing large cash payouts made under threats from Buneti Chanakya and Vijayasai Reddy.

Dhanunjaya Reddy’s Role Surfaces

SIT probe reveals that former IAS officer and then-CM Jagan’s secretary, Dhanunjaya Reddy, was allegedly overseeing the scam’s execution holding reviews with Rajat Bhargava, Vasudeva Reddy, and Satya Prasad to ensure supply orders aligned with bribe arrangements. Meetings in Tadepalli in January 2024 focused on concealing irregularities and destroying official records. Cell tower data and witness statements place him at these gatherings. Rajat Bhargava testified that Dhanunjaya and OSD Krishnamohan Reddy pressured officials not to act against the accused.

OSD Krishnamohan Reddy allegedly instructed Vasudeva Reddy and Rajat Bhargava to execute the conspiracy, SIT officials claimed.