Is YSR Congress Party MP P. V. Midhun Reddy in Trouble Over the Liquor Scam?

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Is YSR Congress Party MP P. V. Midhun Reddy in Trouble Over the Liquor Scam?

Synopsis

In a major development, YSR Congress Party MP P. V. Midhun Reddy has been sent to judicial custody amid allegations of involvement in a massive liquor scam. With the Special Investigation Team uncovering significant irregularities, the political landscape in Andhra Pradesh is about to shift dramatically. What does this mean for the YSRCP and its leadership?

Key Takeaways

  • Midhun Reddy's arrest marks a significant development in the liquor scam investigation.
  • The SIT has uncovered extensive financial irregularities involving public officials.
  • Political ramifications for the YSR Congress Party are expected as the case unfolds.
  • Legal proceedings may lead to further scrutiny of government policies.
  • Public trust in governance may be affected by these allegations.

Vijayawada, July 20 (NationPress) A local court on Sunday placed YSR Congress Party (YSRCP) MP, P. V. Midhun Reddy, in judicial custody due to his involvement in the alleged liquor scam. The Special Investigation Team (SIT), which apprehended the MP on Saturday evening, presented him before the ACB court, where he was remanded until August 1.

Midhun Reddy, serving as the YSR Congress Party’s floor leader in Lok Sabha, is set to be transferred to Rajahmundry Central Jail.

As the MP representing the Rajampet constituency, he is identified as the fourth accused in a case registered last year following the installation of the TDP-led NDA government in the state.

The SIT detained Midhun Reddy after approximately seven hours of interrogation at their office.

This arrest occurred shortly after the Supreme Court rejected his anticipatory bail application, which had also been dismissed by the Andhra Pradesh High Court.

The MP is accused of being significantly involved in the state's excise policy, allegedly diverting kickbacks to shell companies.

Reports indicated that the SIT uncovered extensive irregularities and misappropriation of funds concerning the liquor policy enacted during 2019-2024.

During court proceedings, senior attorney Nagarjuna Reddy, representing Midhun Reddy, contested the SIT's request for judicial remand.

He informed the court that the Lok Sabha Speaker had been notified of his client's arrest, emphasizing that Midhun Reddy has served three terms as MP and has held the position of panel Speaker. He also benefits from Y category security.

The SIT's counsel argued for Midhun Reddy's remand, asserting his pivotal role in the case, supported by clear evidence of his involvement in the financial transactions.

Details about Midhun Reddy’s arrest were shared, including the case being filed under sections 409, 420, and 120 (B) along with sections 34, 37, 7, 7A, 8, 13 (1) (B), and 13 (2) of the Prevention of Corruption Act.

His arrest followed the SIT's filing of a preliminary chargesheet, which consisted of 300 pages, alongside forensic lab findings.

The court was informed that Rs 62 crore had been seized thus far, and the SIT has interviewed 268 witnesses.

The Crime Investigation Department (CID) initially looked into the matter last year after a complaint from an official in the Excise Department. Subsequently, the TDP-led NDA government established an SIT, led by NTR District Commissioner of Police SV Rajashekhar Babu, to investigate the case.

Investigators reportedly identified a kickback scheme involving nearly Rs 3,500 crore embezzled over five years.

There are claims that leaders of the YSR Congress Party promoted a new liquor strategy, introduced new brands, and received kickbacks from distillery firms, resulting in significant financial losses for the government.

To date, the SIT has arrested 11 individuals connected to the case, including Raj Kesireddy (alias Kesireddy Rajashekar Reddy), an advisor to former Chief Minister Y. S. Jagan Mohan Reddy, K. Dhanunjaya Reddy, a former IAS officer, Krishna Mohan Reddy, a past Officer on Special Duty, and Chevireddy Bhaskar Reddy, a former MLA.

Point of View

It is essential to approach the unfolding events surrounding MP P. V. Midhun Reddy and the liquor scam with impartiality and integrity. This situation not only impacts the political climate in Andhra Pradesh but also raises critical questions about governance and accountability within our institutions. We remain committed to delivering accurate information as developments unfold.
NationPress
20/07/2025

Frequently Asked Questions

What led to the arrest of P. V. Midhun Reddy?
P. V. Midhun Reddy was arrested by the SIT after allegations surfaced regarding his involvement in a liquor scam that reportedly involved kickbacks and fund misappropriation.
What is the significance of the Special Investigation Team (SIT)?
The SIT is crucial for investigating serious allegations of corruption and ensuring accountability among public officials, aiming to uphold the rule of law.
How much money has been seized in connection with the liquor scam?
As of now, the SIT has seized Rs 62 crore related to the liquor scam investigation.
What are the legal charges against Midhun Reddy?
Midhun Reddy faces multiple charges under the Prevention of Corruption Act, including sections for criminal breach of trust and cheating.
What are the implications of this case for the YSR Congress Party?
The case could significantly impact the YSR Congress Party's reputation and political stability, raising questions about leadership and governance.