Vijayawada, July 20: YSR Congress Party (YSRCP) Member of Parliament P. V. Midhun Reddy was remanded to judicial custody till August 1 by a city court on Sunday in connection with the high-profile Andhra liquor scam.
Reddy, who serves as the YSRCP’s floor leader in the Lok Sabha and represents the Rajampet constituency, was arrested by the Special Investigation Team (SIT) on Saturday night after nearly seven hours of questioning. He was produced before the Anti-Corruption Bureau (ACB) court on Sunday, which ordered his transfer to Rajahmundry Central Jail.
He has been named as Accused No. 4 in the case, which was registered after the TDP-led NDA came to power in the state last year. The Supreme Court had dismissed his anticipatory bail plea just a day before his arrest. His earlier petition was also rejected by the Andhra Pradesh High Court.
According to investigators, Midhun Reddy played a significant role in manipulating the state’s excise policy and allegedly facilitated the diversion of kickbacks through shell companies. The SIT has reportedly uncovered extensive irregularities and fund misappropriation during the implementation of the liquor policy between 2019 and 2024.
During the court proceedings, senior advocate Nagarjuna Reddy, representing the MP, opposed the SIT's plea for judicial remand. He informed the court that the Lok Sabha Speaker had been notified of the arrest and highlighted Reddy's long political career, including three terms as MP, his tenure as a panel Speaker, and his Y-category security status.
However, the SIT counsel argued that Midhun Reddy’s role was central to the case and presented evidence indicating his involvement in the money trail. The court was briefed on the legal charges under which the case has been filed, including IPC Sections 409, 420, 120(B) read with 34 and 37, as well as Sections 7, 7A, 8, 13(1)(B), and 13(2) of the Prevention of Corruption Act.
Reddy’s arrest came shortly after the SIT submitted a 300-page preliminary chargesheet in the ACB court, supported by forensic reports. The SIT revealed that Rs 62 crore has been seized so far and 268 witnesses have been examined.
The case originated with a complaint filed by an Excise Department official last year. The Crime Investigation Department (CID) began the initial probe, which was later handed over to the SIT, led by NTR District Commissioner of Police S. V. Rajashekhar Babu.
Investigators allege a massive kickback scheme involving nearly Rs 3,500 crore siphoned off over five years. YSRCP leaders are accused of promoting a new liquor policy, launching new brands, and accepting bribes from distilleries, resulting in substantial losses to the state exchequer.
So far, 11 individuals have been arrested in connection with the case. Key among them are Raj Kesireddy (also known as Kesireddy Rajashekar Reddy), an advisor to former CM Y. S. Jagan Mohan Reddy; K. Dhanunjaya Reddy, retired IAS officer and former secretary to the ex-CM; Krishna Mohan Reddy, a former Officer on Special Duty; and former MLA Chevireddy Bhaskar Reddy.