A.P. liquor scam: ED summons former MP Vijayasai Reddy

The Hindu
The Hindu
12m ago
The ED has formally called former MP V. Vijayasai Reddy to appear on January 22 as investigations continue into the alleged Andhra Pradesh liquor scam and its suspected money-laundering component.
A.P. liquor scam: ED summons former MP Vijayasai Reddy

Key insights

  • 1

    ED probe centers on money laundering: While the SIT and police probe the alleged scam and corruption, the ED’s involvement indicates scrutiny of financial flows and potential laundering of proceeds.

  • 2

    Multiple agencies and arrests signal widening investigation: Arrests of a sitting MP, a retired IAS officer, and shell company owners suggest the case spans political, bureaucratic, and corporate actors.

  • 3

    Policy changes are a key allegation: Investigators allege liquor policy changes from 2019–24 enabled kickbacks and the creation of new brands, pointing to regulatory manipulation as a mechanism for corruption.

A What happened
The Enforcement Directorate (ED) has issued a notice to former Rajya Sabha member V. Vijayasai Reddy, asking him to appear before investigators on January 22 as part of its probe into the alleged Andhra Pradesh liquor scam. The case involves allegations of a multi-crore fraud—reported at about ₹3,500 crore—linked to changes in the state’s liquor policy between 2019 and 2024, alleged kickbacks, and the introduction of new liquor brands through corrupt practices. A government-constituted Special Investigation Team (SIT) is also investigating the matter, and police have arrested multiple suspects, including a sitting MP, a retired IAS officer, shell company owners, and others. Mr. Reddy had previously been questioned by police and has said he is ready to cooperate.

Topics

World & Politics Policy & Regulation Corruption & Accountability Investigations Law & Public Safety Crime & Justice

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