Rs. 11 crore seized in Andhra Pradesh liquor scam: SIT raids guest house in Shamshabad

Hyderabad: In a major development in the Andhra Pradesh liquor scam investigation, the Special Investigation Team (SIT) has seized ₹11 crore in cash from a guest house in Shamshabad mandal, near Hyderabad. The money, packed in 12 cardboard boxes, was recovered from Sulochana Farm Guest House in Kacharam village, Rangareddy district.

The raid followed a statement by Varun Purushottam, Accused No. 40 in the case, who told investigators that he hid the cash at the guest house in June 2024. He said the money was disguised as office files and stored with help from an associate, Vinay, on the instructions of Raj Kasi Reddy and Chanakya.

The SIT confirmed the cash was linked to illegal liquor transactions and is now examining the roles of Chanakya, and Vinay. Officials described the seizure as a key breakthrough in the ₹3,500 crore scam.

Earlier, Andhra Pradesh SIT arrested YSR Congress Party (YSRCP) MP Midhun Reddy, listed as Accused No. 4. He was interrogated for nearly six hours on July 19, 2025. The YSRCP has called the investigation politically motivated, accusing Chief Minister Chandrababu Naidu of targeting opposition leaders.

A recent chargesheet also named former Chief Minister Y.S. Jagan Mohan Reddy as a recipient of alleged monthly kickbacks between ₹50 crore and ₹60 crore. The alleged scam, spanning June 2019 to May 2024, involved manipulation of liquor policies to benefit select companies. Investigators say bribes were routed through shell companies after manual processes replaced automated systems in the Andhra Pradesh State Beverages Corporation Limited (APSBCL). Loyal officers were reportedly appointed to oversee operations, with funds later converted into assets or political financing. The SIT's investigation is ongoing.