Andhra Pradesh Liquor Scam: Accused Claims Top Leaders, Officials Behind Hawala Trail
Avinash Reddy, who was recently arrested in connection with the case, was reportedly questioned for nearly seven hours when officials posed over 80 questions.
Published : March 17, 2026 at 1:35 PM IST
Amaravati: Fresh twists have emerged in the ongoing Andhra Pradesh liquor scam investigation, with accused Muppidi Avinash Reddy making serious revelations during interrogation by the Special Investigation Team (SIT).
According to sources, he alleged that the funds routed through Mumbai-based hawala operator Anil Chokhra belonged to "top leaders and officials" of the previous YSR Congress Party (YSRCP) government, though he maintained that he was unaware of the ultimate beneficiary.
Avinash, who was recently arrested in connection with the case, was reportedly questioned for nearly seven hours, during which officials posed over 80 questions. He is said to have described Chokhra's network as highly sophisticated, with strong links to influential circles, enabling large-scale hawala and money laundering operations.
During the interrogation, Avinash placed the onus of alleged irregularities on Raj Kesireddy, claiming that he played a central role in the liquor policy-related dealings. He further stated that it was Kesireddy who facilitated his exit from the country when the probe intensified after the change in government.
Detailing the origins of their business, Reddy reportedly told investigators that he and his brother initially operated liquor outlets in Hyderabad. After the YSRCP came to power in 2019, they learned that Kesireddy was handling key aspects of the state's liquor policy. With his support, they established Adan Distilleries, with Avinash investing Rs one lakh, while industrialist Penaka Sarath Chandra Reddy later infused nearly Rs 60 crore into the venture.
The company went on to secure large supply orders through the Andhra Pradesh State Beverages Corporation Limited (APSBCL) by sub-leasing distilleries such as SPY Distilleries. However, a dispute over shareholding between Kesireddy and Sarath reportedly led to Avinash distancing himself from the company's operations.
"I stepped aside at the very beginning. If any irregularities occurred, Raj Kesireddy alone is responsible," Avinash is said to have told officials.
He further alleged that shell companies were created under the guise of providing services like packaging and logistics. Fake invoices were allegedly generated without actual transactions, enabling the diversion of funds. He also claimed that records were deliberately deleted to erase audit trails.
While denying any involvement in money laundering, Avinash reportedly told investigators that he suspects the entire operation was orchestrated by senior functionaries of the previous regime through Kesireddy.
Officials indicated that more disclosures are expected with the progress in the ongoing investigation.
Also Read
