In a dramatic turn to the Andhra Pradesh liquor scandal, the Enforcement Directorate (ED) is preparing to investigate the multi-crore scam in its own capacity. The ED has formally written to the CID Special Investigation Team (SIT) asking them to provide them with the full details of the case, including the FIR, bank accounts seized, and records of financial transactions. The agency has also approached Vijayawada Police Commissioner to seek permission for interrogation of the accused. Sources have confirmed that the ED is set to charge under the Prevention of Money Laundering Act (PMLA).
Described by officials as one of the biggest financial frauds in the state’s recent history, the liquor scam allegedly operated through a complex web of illegal cash transactions. Alongside officially recorded liquor sales, large-scale unauthorized sales were reportedly orchestrated, with profits allegedly siphoned off by key players. The entire operation—from manufacturing to distribution and retail—was believed to be controlled by YSRCP leaders under the cover of a government-run system.
The CID SIT, which has been investigating the scam for several months, has already seized crucial evidence, arrested multiple individuals, and is reportedly narrowing in on the main masterminds.
The move by the ED comes after sustained pressure from the state government and opposition leaders. Chief Minister Chandrababu Naidu, addressing the Assembly earlier, had confirmed plans to refer the case to the ED to probe deeper into the alleged money laundering angle. While the SIT continues to handle the corruption and fraud investigation, the ED’s focus will be on tracking money laundering transactions running into thousands of crores, including the role of shell companies and suspicious financial networks that have surfaced during the probe.
Meanwhile, three key accused—Dhanunjaya Reddy, Krishnamohan Reddy, and Govindappa Balaji—approached the Supreme Court seeking protection from arrest. However, their petitions were dismissed, clearing the way for law enforcement to proceed. Following the court’s decision, the SIT has stepped up efforts to locate the trio, who are believed to have gone into hiding. Raids are currently underway at their residences and suspected hideouts.
The liquor scam continues to stir political and public outrage, with growing calls for accountability and swift action against those involved.
