Did YSRCP MP Midhun Reddy Appear Before the ED in a Liquor Scandal?
Synopsis
Key Takeaways
- P. Midhun Reddy questioned by ED over liquor scam.
- Investigation tied to Rs 3,500 crore financial misconduct.
- SIT formed to probe extensive irregularities.
- Allegations involve kickbacks from distilleries.
- Political implications for YSR Congress Party.
Hyderabad, Jan 23 (NationPress) YSR Congress Party MP P. Midhun Reddy appeared before the Enforcement Directorate on Friday for questioning related to the multi-crore liquor scam. The Lok Sabha representative from Rajampet, who is among the accused, attended the ED's regional office in Hyderabad.
The ED is investigating money laundering linked to the alleged Rs 3,500 crore liquor scam, which purportedly took place during the tenure of the YSR Congress Party. This inquiry follows an FIR filed by the Andhra Pradesh police.
On Thursday, former Rajya Sabha member V. Vijayasai Reddy was also questioned by the ED. Reddy, who resigned from the YSRCP and his Rajya Sabha seat in January of the previous year, underwent an extensive seven-hour interrogation.
The Special Investigation Team (SIT) from Andhra Pradesh arrested Midhun Reddy on July 19, and he was released on bail on September 30.
The investigation centers on a scandal involving the manipulation of excise policy and illicit kickbacks from distilleries.
After the TDP-led NDA assumed power in 2024, a case was registered at the CID Police Station in Mangalagiri, invoking several sections of the IPC and the Prevention of Corruption Act, 1988.
The initial investigation was conducted by the Criminal Investigation Department (CID) after a complaint from an Excise Department official. Subsequently, the government established an SIT, led by NTR District Commissioner of Police S.V. Rajashekhar Babu, to delve deeper into the case.
The SIT uncovered significant irregularities and embezzlement in the liquor policy enforced between 2019 and 2024, revealing a kickback scheme that reportedly siphoned off nearly Rs 3,500 crore over five years.
Allegations suggest that leaders of the YSR Congress Party promoted a new liquor policy, introduced new brands, and accepted kickbacks from distillery firms, resulting in substantial losses for the government.
The SIT has implicated several individuals in the case, including MPs, retired IAS officers, distillery enterprises, and owners of shell companies.