The Enforcement Directorate (ED) has launched a money laundering investigation into the multi-crore Andhra Pradesh liquor scam by filing an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act (PMLA).
This probe will run alongside an ongoing investigation by the Andhra Pradesh Crime Investigation Department (CID), which has described the case as a large-scale criminal conspiracy involving politicians, government officials, and fake companies.
According to the CID, between October 2019 and March 2024, officials manipulated the state’s liquor procurement process to favor certain brands. This allegedly resulted in illegal profits of over ₹3,200 crore and major financial losses to the state government.
Rajasekhar Reddy Kesireddy, the prime accused, has already been arrested and presented in court. Investigators say that officials deliberately bypassed the automated liquor ordering system (OFS) and instead issued manual orders to preferred suppliers. These suppliers reportedly paid monthly bribes ranging from ₹150 to ₹600 per liquor case, depending on the brand.
The software (C-Tel) used to ensure transparency in ordering was allegedly disabled in October 2019, which allowed orders to be allocated based on favoritism rather than need.
So far, the CID has questioned over 128 people and named 29 individuals and fake companies in the case. The charges include criminal conspiracy, cheating, breach of trust, and corruption under various Indian laws.
During raids, investigators seized 74 hard drives, a laptop, more than 1,000 documents, and digital data linked to depot managers who allegedly posed as government liquor store officials to manipulate orders.
The bribes were often collected in person and coordinated via encrypted apps. The scam reportedly benefited certain brands like Adan’s Supreme, Daaru House XO, and Leela’s Blend, while big names like McDowell’s and Seagram’s lost market share — dropping from 53% to just 5% over five years.
