The Enforcement Directorate (ED) on Friday, April 25, escalated its crackdown on the Andhra Pradesh liquor scam by conducting simultaneous raids at the premises of five key accused across Hyderabad, Vijayawada, and Tirupati. The searches — covering residences, offices, and associated properties — mark a significant intensification of the federal agency's probe into what investigators describe as a multi-crore liquor syndicate that allegedly caused a Rs 4,000 crore loss to the state exchequer.

Who Was Raided and Where

ED officials launched coordinated search operations targeting Chevireddy Bhaskar Reddy, a YSR Congress Party (YSRCP) leader and former MLA; Kesireddy Rajasekhara Reddy, identified as the main accused in the case; Balaji Govindappa, a director of Bharati Cements; Krishna Mohan, the former Officer on Special Duty (OSD) to then Chief Minister Y.S. Jagan Mohan Reddy; and Dhanunjaya Reddy, who served as Secretary in the Chief Minister's Office (CMO).

The searches began early Friday morning and were conducted simultaneously across multiple cities, reflecting the geographic spread of the alleged criminal network. The ED is acting on intelligence derived from the Special Investigation Team (SIT) report submitted by Andhra Pradesh authorities.

Background: How the Investigation Unfolded

The ED's involvement traces back to an FIR registered by the CID, Andhra Pradesh, filed on the complaint of the Principal Secretary to the Government of Andhra Pradesh, alleging a staggering Rs 4,000 crore loss to the public exchequer through the liquor distribution syndicate.

On March 6, the ED made its most significant move yet — attaching movable and immovable properties worth Rs 441.63 crore belonging to Kesireddy Rajasekhara Reddy, his family members, Booneti Chanakya and related entities, Donthireddy Vasudeva Reddy's relatives and entities, and several other persons under the Prevention of Money Laundering Act (PMLA), 2002.

Just three days later, on March 9, ED officials summoned and questioned four accused, including Krishna Mohan and Dhanunjaya Reddy — both of whom had direct access to the highest levels of the previous state government.

The Money Trail: Rs 1,048 Crore in Kickbacks

ED investigations have so far established a money trail of Rs 1,048.45 crore in kickbacks. According to the agency, multiple distilleries were allegedly coerced into paying cash, gold, and other valuables to the syndicate. In some cases, the syndicate reportedly took direct control and operational ownership of certain distilleries, and also extracted financial gains from the transportation of liquor.

Investigators found that physical cash was collected and stockpiled at multiple locations in Hyderabad, before being moved, distributed, or laundered by designated cash handlers within the network. The proceeds of crime were allegedly channelled into immovable property purchases and used for the personal enrichment of syndicate members and their associates.

The ED has noted that a substantial portion of the Proceeds of Crime has been concealed or dissipated by the accused — a finding that likely explains the urgency of Friday's multi-city raids.

Political Significance and Broader Implications

The presence of former YSRCP MLA Chevireddy Bhaskar Reddy and two officials directly linked to former CM Jagan Mohan Reddy's office — Krishna Mohan (OSD) and Dhanunjaya Reddy (CMO Secretary) — gives this case unmistakable political dimensions. It signals that the ED's investigation is closing in on the administrative and political machinery that allegedly facilitated the scam during the previous YSRCP government's tenure.

This comes amid a broader national pattern of post-election ED investigations into state-level corruption, raising questions about accountability mechanisms and the role of central agencies in state-level governance. Notably, the current Telugu Desam Party (TDP)-led government in Andhra Pradesh has been vocal about exposing alleged financial irregularities of the previous administration.

Critics, however, argue that the timing and pace of such investigations often align with political transitions — a trend seen in multiple states — raising concerns about the selective use of federal investigative powers. The ED, for its part, maintains it is acting strictly on the basis of the SIT's findings and established financial evidence.

What Comes Next

With Friday's raids adding fresh momentum to the probe, legal experts expect the ED to file a supplementary chargesheet in the coming weeks, potentially naming additional accused. The agency may also move to attach further properties as the money trail expands beyond the currently documented Rs 1,048.45 crore. All eyes will be on whether the ED issues formal arrest warrants for any of the five individuals raided on Friday, which would mark a decisive escalation in the case.