The Special Investigation Team (SIT) of the Andhra Pradesh CID, probing the massive alleged ₹3,500 crore liquor scam, has identified a crucial financial link in Mumbai. Investigators claim that bullion operator Anil Chokhara created an elaborate network of shell companies to funnel illicit money, directly connecting two primary accused in the case.
The Mumbai Connection and the Shell Network
According to the SIT, Anil Chokhara (Accused No. 49) was arrested on November 13 from Navi Mumbai. The 44-year-old, originally from Rajasthan, is accused of engineering a complex web of shell entities. This network was allegedly used to launder ₹77.55 crore in kickbacks from major distilleries during the previous YSR Congress Party (YSRCP) government led by Y S Jagan Mohan Reddy.
The SIT alleges that distilleries linked to the key accused—Kesireddy Rajasekhar Reddy (A1) and Muppidi Avinash Reddy (A7)—diverted substantial funds using fraudulent mechanisms. This black money was reportedly sent to multiple bogus firms to be converted into white, which was then used to pay bribes within the liquor syndicate.
Unraveling the Financial Trail
Chokhara's arrest has provided investigators with a direct financial trail. The SIT states that the ₹77.55 crore was initially diverted to four Mumbai-based shell firms. To obscure the audit trail, the money was then layered across 32 additional entities.
In total, the SIT has uncovered 35 shell companies under Chokhara's control. These entities were allegedly created through:
- Impersonation
- Appointment of dummy directors
- Falsified documentation
- Manipulated bullion-trade transactions
This network helped investigators trace the chain of beneficiaries and political links that enabled the large-scale diversion of funds during the YSRCP regime.
Background of the Scam and Ongoing Probe
The Andhra Pradesh CID had filed a chargesheet in this case on July 20 in an ACB court in Vijayawada. It alleged that liquor companies paid bribes to secure lucrative contracts from the Andhra Pradesh State Beverages Corporation Limited (APSBCL) between 2019 and 2024.
The chargesheet names Rajashekar Reddy and P V Midhun Reddy—a YSRCP leader and three-time MP—as the alleged masterminds. Both have been arrested. It further alleges that the scam proceeds were funneled through over 30 shell firms and invested in acquiring land, gold, and luxury assets in Dubai and Africa.
While the chargesheet mentions that YSRCP chief Y S Jagan Mohan Reddy was among those who allegedly received kickbacks, he has not been named as an accused. Anil Chokhara was produced before a court in Thane, which issued a transit warrant for his production before the ACB court in Vijayawada by November 15. He was subsequently remanded to police custody.
Chokhara is not new to legal troubles; he was previously booked in an alleged ₹304-crore bank fraud case and multiple cases by the Mumbai Police's Economic Offences Wing. The SIT's current questioning focuses on his shell company operations, which are central to mapping the entire financial architecture of the liquor scam.
