Vijayawada, March 9 (NationPress) The Enforcement Directorate (ED) has escalated its investigation into the extensive liquor scandal in Andhra Pradesh by interrogating four individuals accused on Monday.

Among those questioned was Krishnamohan Reddy, who faced ED officials for a duration of two hours, while the questioning of Dhanunjay Reddy, Venkatesh Naidu, and Bonneti Chanakya was still ongoing.

This round of questioning follows the ED's recent attachment of assets, both movable and immovable, valued at Rs 441.63 crore. These assets belong to Kessireddy Rajasekhara Reddy, his family, and related entities, as well as to Booneti Chanakya and his associates, among others, under the Prevention of Money Laundering Act (PMLA), 2002.

The central agency began its inquiry based on a First Information Report (FIR) filed by the CID of Andhra Pradesh, stemming from a complaint by the Principal Secretary to the Andhra Pradesh Government, highlighting a significant financial loss to the state amounting to Rs 4,000 crore.

This alleged scam reportedly took place during the tenure of the YSR Congress party.

The ED's investigations have uncovered that physical cash kickbacks were gathered and stored across various locations in Hyderabad, from which they were later distributed or disposed of by designated handlers within the syndicate.

To date, the ED has traced a money trail of Rs 1,048.45 crore in the form of kickbacks, which numerous distilleries were compelled to pay through cash, gold, and other means, as well as through control over the operations of several distilleries by the liquor syndicate, along with financial benefits obtained from liquor transportation.

Allegedly, the proceeds from these illicit activities were utilized to acquire real estate and for the personal gain of syndicate members and their associates.

A considerable fraction of these Proceeds of Crime have been reportedly concealed or dissipated by the accused.

The PMLA investigation has indicated that prior to 2019, the liquor trade in Andhra Pradesh was managed via a transparent and automated software system ensuring complete digital oversight of procurement, supply, and sales, thus creating a verifiable electronic audit trail. Following the 2019 Assembly elections, however, the newly established state government monopolized retail liquor sales through Government Retail Outlets (GROs) run by the Andhra Pradesh State Beverages Corporation Limited (APSBCL).

As part of the alleged conspiracy, the automated system was intentionally disabled and replaced with a manual process, granting unrestricted discretionary authority to APSBCL officials regarding Orders for Supply (OFS). This manual regime was purportedly misused to discriminate against established liquor brands, which were systematically marginalized or forced out of the market. Concurrently, preferential allocations were made to certain “favored” brands in exchange for kickbacks, as reported by the ED.