A.P. liquor scam: ED attaches properties worth ₹441 crore of key accused

In a major development in the alleged liquor scam in Andhra Pradesh, officials of the Directorate of Enforcement, Hyderabad, have attached properties belonging to the accused involved in the case.

The ED attached movable and immovable properties worth about ₹441.63 crore belonging to Kesireddy Rajasekhara Reddy, Booneti Chanakya and Donthireddy Vasudeva Reddy along with their family members and related entities.

The attached assets include fixed deposits, land parcels, bank balances and other immovable properties. These were attached under the provisions of the Prevention of Money Laundering Act. 2002 in connection with the alleged liquor scam, the ED officials said on Friday.

It is alleged that the accused caused a loss of about ₹3,500 crore to the State exchequer during the tenure of the previous government.

Multiple investigation agencies are probing the liquor syndicate scam. Police have identified more than 50 accused in the case and 16 persons allegedly involved have been arrested so far.

Earlier. The Special Investigation Team investigating the scam had attached properties located at various places belonging to some of the accused.

According to investigators, the accused formed a syndicate, disabled the online liquor sales system and introduced a manual cash system. They allegedly monitored the supply and sale of liquor through government retail outlets.

Some officials of the A.P. State Beverages Corporation Limited allegedly colluded with the syndicate members and resorted to large-scale irregularities while issuing supply orders.

Investigators said the tainted funds were routed through several entities including M.s. Eshanvi Infra Projects Private Limited. M.s. ED Entertainment. M.s. Uni Corporate Solutions Private Limited. M.s. Tag Developers and other companies.

Investigation officers said Kesireddy Rajasekhara Reddy. The prime accused in the case. In collusion with Booneti Chanakya. Muppidi Avinash Reddy. Tukekula Eswar Kiran Kumar Reddy. Palla Dileep. Saif Ahmed and others allegedly collected kickbacks of about ₹3,500 crore from distilleries.

Distilleries such as Adan Distillery Private Limited. Leela Distilleries Private Limited and U.V. Distilleries were allegedly given higher business volumes by the syndicate members by abusing official and political influence for financial gains.

During the investigation, it was found that the accused suppressed several established liquor brands, promoted select brands and collected kickbacks. Traders who refused to pay commissions were allegedly denied supply orders and forced out of the market.

The accused allegedly appointed collection agents, created mule accounts and routed funds through several fictitious entities. The illegal proceeds were used for real estate investments, purchase of gold and acquisition of other movable and immovable assets.

The PMLA investigation further revealed that shell companies such as Olwick, Arroyo, Ezyload, Kripati and other firms were used to conceal the origin of the proceeds of crime and project them as legitimate income.