ED raids intermediaries in Andhra liquor scam, ₹3,500 crore flow under probe
HYDERABAD: The Enforcement Directorate (ED) on Thursday conducted nationwide searches in Hyderabad, Delhi NCR, Tamil Nadu and Karnataka in connection with alleged money-laundering intermediaries linked to the Andhra Pradesh liquor scam.
Officials said the searches targeted middlemen suspected of routing nearly ₹3,500 crore through benami firms, shell entities and hawala operators. The operation was based on a predicate offence registered by the state Special Investigation Team (SIT), which had flagged large-scale diversion of funds.
The ED has recorded statements from several distilleries allegedly tied to the case and questioned prime accused Raj Kasireddy, who is currently lodged in jail. Investigators are examining the flow of illicit funds and the laundering methods used to channel the suspected proceeds of crime. No political leaders were covered during Thursday’s raids, officials clarified.
SIT flagged bribes for liquor supply orders
The case stems from allegations by the SIT of the Andhra Pradesh police that 16 liquor companies paid ₹1,677 crore in bribes between 2019 and 2024 to secure supply orders from the Andhra Pradesh State Beverages Corporation Limited (APSBCL). In return, these firms reportedly bagged contracts worth ₹10,835 crore.
According to SIT data, during the former YSR Congress Party government, APSBCL issued supply orders worth ₹23,000 crore, with more than 90% of them going to just 40 of the 111 registered liquor companies.
ED conducted raids in following companies
Arete Institute of Medical Sciences Pvt. Ltd.; Shree Jewellers Eximp Pvt. Ltd.; M/s N R Udhyog LLP; The India Fruits Pvt. Ltd. (Chennai); M/s Venkateshwara Packaging; Suvarna Durga Bottles Pvt. Ltd.; M/s Rao Saheb Boorugu Mahadev Jewellers; M/s Ushodaya Enterprises owned by Bollineni Rajesh chandra; M/s Mohan Lal Jewellers Private Limited (Chennai)
Diversion of funds under scrutiny
Investigators allege that once APSBCL released payments, distilleries diverted large sums under the pretext of raw material purchases and brand promotions. The funds were allegedly withdrawn in cash and handed over as kickbacks.
Acting on the SIT’s predicate offence, the ED invoked the Prevention of Money Laundering Act (PMLA) and has summoned multiple companies and individuals for questioning as the probe continues.
