Hyderabad, Jan 23, 2026
YSR Congress Party MP P. Midhun Reddy on Friday appeared before the Enforcement Directorate for questioning in the multi-crore liquor scam. The Lok Sabha member from Rajampet, who is one of the accused, appeared before the ED officials at the agency’s regional office in Hyderabad.
The ED is conducting a money laundering investigation in the Rs 3,500 crore liquor scam, which allegedly occurred during the YSRCP rule. The ED has taken up the probe based on an FIR issued by the Andhra Pradesh police.
Former Rajya Sabha member V. Vijayasai Reddy had appeared before the ED on Thursday. Vijayasai Reddy, who quit YSRCP and also resigned as Rajya Sabha member in January last year, was questioned for seven hours.
The Special Investigation Team (SIT) of Andhra Pradesh, which is probing the case, had arrested Midhun Reddy on July 19. He was released on bail on September 30.
The case relates to the multi-crore scandal allegedly committed by manipulating excise policy and receiving kickbacks from distilleries.
After the TDP-led NDA came to power in 2024, a case was registered at the CID Police Station in Mangalagiri under Sections 409, 420, 120 (B), r/w 34 and 37 of IPC and Section 7, 7A, 8, 12, 13 (1), (b), 13 (2) of the Prevention of Corruption Act, 1988.
The Criminal Investigation Department (CID) initially conducted an investigation following a complaint by an official of the Excise Department. Later, the government constituted the SIT, headed by NTR District Commissioner of Police S.V. Rajashekhar Babu, to probe the case.
The SIT found large-scale irregularities and fund misappropriation in the liquor policy implemented during 2019-24. Investigators reportedly uncovered a kickback network involving nearly Rs 3,500 crore siphoned off over five years.
There are allegations that the YSR Congress Party leaders encouraged the new liquor policy, floated new brands, received kickbacks from the distillery companies, causing huge losses to the government.
The SIT has named several accused in the case, including MPs, retired IAS officers, distillery companies and shell company owners.(Agency)
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