What Evidence Did the ED Uncover in the Andhra Liquor Scam?
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Synopsis
The ongoing investigation into the Andhra liquor scam has revealed shocking evidence of fraudulent transactions and significant financial misconduct. The ED's operations have led to the seizure of crucial materials, exposing a web of corruption involving kickbacks and illicit funds. Stay informed as we delve into the details of this extensive probe.
Key Takeaways
- Significant evidence unearthed by the ED in the liquor scam investigation.
- Involvement of bogus transactions and inflated pricing schemes.
- Absconding accused believed to be in Dubai.
- Rs 38 lakh in cash seized during operations.
- Need for accountability in governmental processes.
Hyderabad, Sep 19 (NationPress) In a series of operations conducted by the Directorate of Enforcement (ED) across multiple locations in India related to the Andhra Pradesh liquor scam, significant incriminating material was seized, showcasing evidence of bogus and inflated transactions that resulted in the generation and movement of Proceeds of Crime, the agency disclosed in a statement on Friday.
The searches also uncovered fake invoices and transport challans with nonexistent vehicle details; parallel invoices demonstrating inflated prices; and chat records implicating certain accused individuals who are currently absconding and believed to be in Dubai, along with evidence of the transfer of Proceeds of Crime (POC) to them, as stated by the agency.
A total of Rs 38 lakh in unaccounted cash was seized from one property. Additionally, ledgers indicating remittance of POC worth several crores were also confiscated.
The ED's Hyderabad Zonal Office executed searches on Thursday at 20 locations in Hyderabad, Bengaluru, Chennai, Thanjavur, Surat, Raipur, Delhi NCR, and Andhra Pradesh under the Prevention of Money Laundering Act (PMLA) related to the liquor scam.
These searches targeted the premises of individuals and entities that facilitated kickbacks through bogus and inflated transactions.
The agency's investigation was initiated after an FIR was registered by the A.P. CID under several sections of the IPC, citing a loss to the government exchequer amounting to Rs 4,000 crore. On February 5, the government of Andhra Pradesh formed a Special Investigation Team (SIT) to probe the matter.
The FIR alleged that in the 'new liquor policy' from October 2019 to March 2024, certain accused individuals engaged in brand killing and the promotion of new brands, marginalizing popular liquor brands (such as McDowell’s, Royal Stag, Imperial Blue, etc.) that refused to pay kickbacks, while promoting new or dubious brands in return for substantial payments from distilleries and suppliers. The procurement system transitioned from automated to manual, enabling potential manipulation in the Order for Supply (OFS).
The SIT has filed charge sheets alleging the transition from an automated system to manual approvals, permitting manipulation of brand-wise supply volumes; favoring a select group of distilleries and marketing firms; coercing suppliers into paying 15-20% of their invoice value as kickbacks, with threats of suppression or delisting of their brands; establishing shell distilleries to channel funds and secure inflated OFS volumes; and appointing key officials who facilitated brand approvals, manipulated eligibility criteria, and suppressed dissent from suppliers.
The charge sheets further allege that kickbacks were generated through procurement manipulation, fake vendor payments, and shell companies, which were then utilized for election-related purposes, personal gains, and the transfer of funds abroad.
The ED's investigation revealed that certain accused individuals intentionally discouraged orders for established brands; delayed legitimate payments owed to distilleries; and pressured distilleries for illicit payments or kickbacks in exchange for OFS.
The money trail investigation by the ED uncovered that a portion of the payments made by Andhra Pradesh State Beverages Corporation Limited (APSBCL) to suppliers was diverted to various entities under the pretense of goods or services supply. However, these transactions were found to be fraudulent, with recipients being either non-existent, shell entities, or unrelated individuals/entities.
In several instances where the entities were related to their business lines, the transactions were inflated. Additionally, funds were transferred by suppliers to jewelers to acquire gold or cash, which was subsequently handed over to the accused individuals as kickbacks. Hence, bogus and inflated transactions were utilized to siphon off funds under the guise of business dealings, thereby enabling the generation and movement of illicit funds as kickbacks to the accused.
Point of View
I emphasize that this investigation reflects a broader issue of corruption and financial misconduct in governmental systems. The findings from the ED shed light on the urgent need for accountability and transparency in public dealings. It's critical to uphold the principles of justice and ensure that such scams do not undermine public trust.
NationPress
20/09/2025
Frequently Asked Questions
What is the Andhra liquor scam?
The Andhra liquor scam involves a series of fraudulent activities related to the liquor distribution process in Andhra Pradesh, resulting in significant financial losses for the government.
What has the ED uncovered during the investigation?
The ED has uncovered incriminating materials indicating bogus transactions, inflated prices, and kickbacks involving various entities in the liquor distribution chain.
How much money is involved in the scam?
The scam has resulted in alleged losses to the government exchequer amounting to approximately Rs 4,000 crore.
Who are the main accused in the scam?
The main accused include individuals and entities involved in facilitating kickbacks and manipulating the liquor distribution system, with some absconding and believed to be overseas.
What actions have been taken by the government?
The Andhra Pradesh government has set up a Special Investigation Team (SIT) to probe the matter and has registered FIRs against those involved in the scam.
