The Enforcement Directorate's Hyderabad unit conducted fresh searches on Friday at 12 locations in Hyderabad and Tirupati, targeting close associates of former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy. The raids are linked to the alleged multi-crore liquor scam that occurred when Jagan's YSR Congress Party was in power from 2019 to 2024. The scam is estimated by the ED to involve Rs 3,200 crore.
Properties and Documents Seized
Premises linked to several individuals were searched, including former MP V Vijayasai Reddy, former YSRC MLA Chevireddy Bhaskar Reddy, Kesireddy Rajasekhara Reddy alias Raj Reddy, Booneti Chanakya alias Prakash, Krishnamohan Reddy, K Dhananjaya Reddy, Avinash Gowd, Muppidi Avinash Reddy alias Sumith, and Sajjala Sridhar Reddy. Officials seized property documents and transaction records, intensifying scrutiny on Jagan's inner circle. Sources indicated that no significant amount of cash was found during the searches.
These searches are part of an already registered ECIR (ED's FIR) and mark the second round of action in the case.
Key Allegations Against Raj Reddy
Raj Reddy is identified as the principal architect of the alleged cartel. As IT adviser to the Jagan-led government, he allegedly controlled officials of the Andhra Pradesh State Beverages Corporation Limited (APSBCL) and pushed a manual procurement system. The ED claims this mechanism enabled selective approval of certain brands at inflated prices while rejecting others to extract kickbacks.
Raj Reddy was arrested in April 2025 and released on bail a year later. YSRC MP P Midhun Reddy was also arrested in July 2025 in connection with the case and released on bail in September 2025. In total, 16 arrests have been made in connection with the multi-crore scam.
Money Laundering and Real Estate Investments
The ED claims that Raj Reddy laundered Rs 3,200 crore through a web of companies. Funds were allegedly diverted into real estate ventures, and properties were acquired in family names to conceal ownership. ED documents also name Vijayasai Reddy as having allegedly influenced supply orders, with claims that distilleries were required to comply with certain conditions to secure business. Chevireddy Bhaskar Reddy is accused of handling the movement of funds, including transporting cash and altering records, while also reportedly exploring overseas investments.
Roles of Other Accused
Among those searched, Dhananjaya Reddy, a former secretary to Jagan, is alleged to have instructed officials to override procurement systems and chaired review meetings related to liquor operations. Krishnamohan Reddy, who served as OSD to Jagan, is described as a communication link between senior operatives and APSBCL officials.
Investigators described Prakash as a key operative acting under Raj Reddy's direction. He allegedly coordinated with distillery owners through encrypted platforms and VoIP calls, collecting kickbacks in cash and other forms. He is also said to have fixed pricing structures to generate surplus funds and exercised operational control over UV Distilleries and Leela Distilleries, managing procurement and transactions.
Prakash is alleged to have routed funds through TAG Developers Pvt Ltd and invested in healthcare ventures, including Arete Institute of Medical Sciences. Talla Avinash Goud, proprietor of TAG Developers, is accused of channelling funds through company accounts and creating backdated agreements to legitimise transactions. Sumith is described as managing operations of ADPL and Leela Distilleries, handling procurement processes and acting as an intermediary in fund collection. Sajjala Sridhar Reddy is alleged to have participated in meetings with manufacturers, coordinating payments and discussing rates linked to supply.
CID Probe and SIT Findings
Following the Andhra Pradesh government's order for a CID probe into the alleged scam in July 2024, a special investigation team (SIT) was constituted in February 2025. Its findings pointed to large-scale money laundering, corruption, and the creation of a liquor syndicate that allegedly operated during the YSRC government's tenure between 2019 and 2024.
According to the SIT, the cartel manipulated procurement systems to favour select liquor brands in exchange for substantial kickbacks. Investigators further alleged that the network channelled funds through shell companies and intermediaries, effectively masking the flow of illicit money.
