Hyderabad, Oct 14 (NationPress) The Special Investigation Team (SIT) of Andhra Pradesh is currently investigating the alleged liquor scam. On Tuesday, they conducted searches at the residences of Peddireddy Midhun Reddy, the floor leader of the YSR Congress Party in Lok Sabha.

The SIT's operations took place at the MP's homes located in Hyderabad, Tirupati, and Bengaluru.

In Hyderabad, the SIT focused on properties in Prashasan Nagar and Gayatri Hills, Yousufguda. Additionally, his office situated in Kondapur was also searched.

Midhun Reddy is implicated in a staggering Rs 3,200 crore liquor scam that allegedly transpired under YSRCP's governance. After being arrested on July 19, he was granted bail on September 30.

Post-release, Midhun Reddy expressed that he felt he was treated like a terrorist while incarcerated.

He accused the coalition government of engaging in diversionary tactics through the filing of fabricated cases against YSRCP leaders, asserting that the Telugu Desam Party (TDP) has historically employed such strategies when in power.

He condemned the government's attempts to intimidate opposition members by lodging false allegations.

Following the TDP-led NDA assumption of power last year, a case was filed at the CID Police Station in Mangalagiri under various sections of the IPC and the Prevention of Corruption Act 1988.

Initially, the Crime Investigation Department (CID) looked into the matter after a complaint from an official within the Excise Department. Subsequently, the government established the SIT, overseen by S.V. Rajashekhar Babu, the Commissioner of Police for NTR District, to further investigate.

The SIT discovered significant irregularities and misappropriation of funds related to the liquor policy enacted between 2019 and 2024.

Reports indicate the existence of a kickback network where approximately Rs 3,500 crore was siphoned off over five years.

Allegations suggest that YSR Congress Party leaders promoted the new liquor policy, introduced new brands, and accepted kickbacks from distillery firms, resulting in substantial losses for the government.

To date, the SIT has named 48 individuals in the case, with 12 arrests made.

Three chargesheets have been submitted to the ACB Court in Vijayawada, with supplementary documents indicating the alleged involvement of then Chief Minister Y.S. Jagan Mohan Reddy.

Although Jagan Mohan Reddy has not been formally accused, the SIT alleges he made decisions to alter the excise policy, enabling the illicit amassing of wealth through the liquor trade. It is claimed that low-profile individuals, including office workers, were utilized to launder kickbacks from liquor companies, with employees acting as couriers to deposit illicit cash into a network of bank accounts associated with the syndicate.