Andhra SIT finds Rs 4,000 cr alleged kickbacks in liquor sector over 5 years linked to two YSRCP leaders: Sources

AMARAVATI(Andhra Pradesh): The Special Investigation Team (SIT) appointed by the Andhra Pradesh government to probe alleged irregularities and corruption in the State’s liquor sector from 2019 to 2024 is in the final stages of its investigation.

According to reports, kickbacks amounting to Rs 4,000 crore were allegedly received over the five-year tenure of the YSRCP government.

Notably, the newly elected NDA government in Andhra Pradesh constituted the SIT on February 5 this year to investigate corruption in the liquor sector during the previous administration.

Reports suggest that liquor manufacturers cooperated with investigators and confirmed that approximately Rs 150-Rs 200 per case was allegedly extorted from them every month, totalling around Rs 80 crore per month in kickbacks. Statements from major manufacturers indicate that a YSRCP MP was allegedly operating this racket.

Sources also claim money was allegedly routed through two officials, while two YSRCP leaders are alleged suspects in the kickbacks scam.

Investigators have found that the scheme was allegedly linked to former Andhra Pradesh Chief Minister Jagan Mohan Reddy’s 2019 election promise of imposing prohibition. Under this pretext, private liquor stores were abolished, and only government-run outlets were permitted to sell alcohol.

With the State controlling liquor sales, national brands were allegedly pressured to exit, leaving only local manufacturers in the market.

Reports indicate that over the past five years, all national liquor brands withdrew from Andhra Pradesh due to alleged extortion demands. This led to the rise of local brands, raising concerns over quality standards.

Under the new policy, national and global liquor brands have now re-entered the Andhra Pradesh market. (ANI)