The Directorate of Enforcement (ED), Hyderabad, has provisionally attached movable and immovable properties worth ₹441.63 crore in connection with the alleged Andhra Pradesh liquor scam under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The attached assets belong to Kessireddy Rajasekhara Reddy, his family members and related entities, Booneti Chanakya and his associated companies, as well as relatives and entities linked to Donthireddy Vasudeva Reddy and several others.
According to the ED, the properties include bank balances, fixed deposits, land parcels and other immovable assets.
The ED initiated its investigation based on an FIR registered by the CID, Andhra Pradesh, under multiple IPC sections on a complaint by the Principal Secretary to the Government of Andhra Pradesh. The complaint alleged a loss of around ₹4,000 crore to the state exchequer.
Liquor Policy Changes After 2019
The investigation found that before 2019, the liquor trade in Andhra Pradesh was regulated through a transparent automated software system that tracked procurement, supply and sales.
However, after the 2019 Assembly elections, the newly formed state government allegedly monopolised liquor retail through Government Retail Outlets (GROs) operated by the Andhra Pradesh State Beverages Corporation Limited (APSBCL).
ED alleged that the automated system was deliberately disabled and replaced with a manual system, giving wide discretionary powers to APSBCL officials in issuing Orders for Supply (OFS).
Preferential Treatment and Kickbacks
The manual system was allegedly used to sideline established liquor brands while favouring selected brands in return for illegal kickbacks.
The investigation revealed that similar-sounding brands (SSBs) were introduced with artificially inflated prices, allowing certain distilleries to generate excess profits. These profits were allegedly used to meet illegal monetary demands from cartel members.
Distilleries were reportedly forced to pay kickbacks ranging from 15% to 20% of the basic price per liquor case in order to receive supply approvals.
Those who refused to comply allegedly faced payment delays, supply order rejections and other coercive actions.
Encrypted Communication and Syndicate Role
ED said the syndicate used encrypted VoIP calls and messaging platforms such as Signal to coordinate operations and conceal identities of key operatives including Booneti Chanakya (alias Prakash), Muppidi Avinash alias Sameeth, and Mohammed Saif.
Role of Liquor Syndicate
The investigation alleged that Kessireddy Rajasekhara Reddy, along with members of the liquor syndicate, orchestrated a multi-crore scam in liquor procurement and distribution by manipulating the procurement process of APSBCL.
The ED estimates that kickbacks worth around ₹3,500 crore were collected by members of the syndicate.
Distilleries Used as Front Entities
The probe revealed that several distilleries were allegedly controlled or influenced by the syndicate and used as special purpose vehicles to generate proceeds of crime.
Entities such as Adan Distillery Pvt Ltd, Leela Distilleries Pvt Ltd and U.V. Distilleries were among those found to be operating under the effective control of the group.
Transport Contracts Manipulated
The ED also found alleged irregularities in liquor transportation contracts awarded through tenders floated by APSBCL.
A centralised transport tender was awarded to Sigma Supply Chain Solutions Pvt Ltd at rates significantly higher than previous depot-wise contracts. Although the contract was officially awarded to the company, operational control was allegedly exercised by members of the liquor syndicate.
Part of the contract payments were allegedly diverted to entities such as TEKKR, Arroyo and Ezyload to launder proceeds of crime.
Money Laundering Through Shell Firms
Investigators also found that several distilleries engaged vendors and fictitious entities for raw materials and packaging supplies. These arrangements allegedly helped convert banking funds into unaccounted cash through inflated or fake invoices.
The proceeds were later invested in real estate and personal assets.
Funds were reportedly routed through companies including Eshanvi Infra Projects Pvt Ltd, ED Entertainment, Uni Corporate Solutions Pvt Ltd and Tag Developers to purchase land parcels and undertake residential development projects.
The ED also found evidence of fabricated and backdated agreements used to disguise illegal funds as legitimate business transactions.
Complex Web of Shell Companies
To hide the origin of funds, the syndicate allegedly used a network of shell and front companies, including Olwik, Kripati, Nysna Multiventures, Arroyo, Ezyload and D-Cart.
These entities were used to layer transactions and obscure the illicit source of funds.
₹1,048 Crore Money Trail Identified
The ED said its investigation has so far uncovered a money trail of ₹1,048.45 crore in kickbacks paid by several distilleries in the form of cash, gold and operational control of distilleries.
The proceeds were allegedly used for purchasing properties and enriching members of the liquor syndicate and their associates.
Officials said a substantial portion of the illicit proceeds has been concealed or dissipated, and further investigation in the case is ongoing.
The post ED Attaches ₹441.63 Crore Assets in Andhra Pradesh Liquor Scam; ₹1,048 Crore Money Trail Unearthed appeared first on Telugu360.
ED Attaches ₹441.63 Crore Assets in Andhra Pradesh Liquor Scam; ₹1,048 Crore Money Trail Unearthed
