ED Conducts Searches in Multi-Crore Liquor Scam
The Enforcement Directorate's Hyderabad unit carried out searches at 12 locations in Hyderabad and Tirupati, Andhra Pradesh, as part of its investigation into an alleged multi-crore liquor scam. The raids targeted key aides of former Chief Minister Y. S. Jagan Mohan Reddy. The premises searched were linked to several individuals, including former MP V. Vijayasai Reddy, former YSRC MLA Chevireddy Bhaskar Reddy, Kesireddy Raj Reddy, Chanakya, Krishna Mohan Reddy, Dhananjaya Reddy, Avinash Goud, Avinash Muppidi, and Sajjala Sreedhar Reddy, among others.
Officials stated that the action was part of an already registered ECIR and marked the second round of searches in the case. During the raids, investigators recovered property documents and records related to financial transactions. Several close associates of Jagan Mohan Reddy came under scrutiny. Dhananjaya Reddy had served as secretary to the former chief minister, while Krishna Mohan Reddy was his officer on special duty (OSD).
According to the agency, Dhananjaya Reddy allegedly instructed officials to allow manual overrides in procurement systems and participated in review meetings related to operations. The ED also alleged that Vijayasai Reddy had influence over supply orders and that distilleries were required to meet certain conditions to secure business. He is also linked to initial funding arrangements for Adan Distilleries. Chevireddy Bhaskar Reddy is said to have handled the movement of funds, including transporting cash and altering records. Sources further indicated that investments abroad were explored as part of fund deployment.
Alleged Mastermind and Financial Network
Kesireddy Rajasekhara Reddy, also known as Raj Reddy, has been identified by the ED as the alleged main architect of the liquor cartel. While serving as an IT adviser to the Andhra Pradesh government, he is accused of influencing APSBCL officials and directing a manual procurement system. This system allegedly enabled selective approval of certain brands at inflated prices while rejecting others to extract kickbacks. ED sources claimed that around ₹3,200 crore in alleged proceeds of crime were laundered through a network of companies, including Adan Distilleries and Leela Distilleries. Funds were reportedly diverted into real estate projects through firms such as Eshanvi Infra Projects, with investments in ventures like “Wilderness Ranch” and “PRYDE”. Properties were allegedly purchased in the names of family members to conceal ownership.
Role of Operatives
Booneti Chanakya, also known as Prakash, has been described as a key operative who allegedly acted as a collection agent under Raj Reddy’s direction. He is said to have used encrypted communication and VoIP calls to coordinate with distillery owners and collect kickbacks, often in cash. Chanakya also allegedly managed operations at distilleries such as U.V. Distilleries and Leela Distilleries, and routed funds through entities including TAG Developers. Investigators said he invested in sectors such as healthcare through firms like Arete Institute of Medical Sciences.
Officials and Intermediaries
Krishna Mohan Reddy is described as a link between Raj Reddy and APSBCL officials, with alleged involvement in meetings and financial discussions. Talla Avinash Goud, linked to TAG Developers, is accused of routing funds through company accounts and creating backdated agreements to present transactions as legitimate. Muppidi Avinash Reddy, also known as Sumith, is said to have handled operations at certain distilleries and acted as an intermediary in fund collection. Sajjala Sreedhar Reddy allegedly took part in meetings with manufacturers and coordinated payments, including discussions on supply rates.
The investigation into the alleged liquor scam is ongoing.
