PNS|Vijayawada
In a breakthrough in the multi-crore liquor scam in Andhra Pradesh, the Special Investigation Team (SIT) on Friday arrested retired IAS officer K Dhanunjay Reddy and P Krishna Mohan Reddy, former Officer on Special Duty (OSD) to former Chief Minister YS Jagan Mohan Reddy.
The arrests followed three days of intense interrogation and the Supreme Court’s rejection of their anticipatory bail pleas, citing the gravity of the allegations. SIT officials confirmed the duo were taken into custody based on incriminating evidence and witness testimonies. Dhanunjay Reddy, listed as Accused No. 31, formerly served as secretary in the Chief Minister’s Office and is alleged to have played a pivotal role in framing liquor policies that favoured select suppliers, manipulated zoning allocations, and facilitated kickbacks.
Krishna Mohan Reddy, named as Accused No. 32, is believed to have coordinated with liquor suppliers and distilleries to collect monthly bribes amounting to Rs 50–60 crore. These bribes were allegedly routed through him and Govindappa Balaji (Accused No. 33), a director of Bharathi Cements.
The SIT alleges large-scale corruption, including manipulation of tenders and cartelisation in liquor procurement and distribution, causing estimated losses of up to Rs 3,500 crore to the state exchequer.
Meanwhile, the Enforcement Directorate (ED) is preparing to launch a parallel investigation into the money laundering aspects of the case. The ACB Court has permitted the recording of the statement of Raj Kasireddy, the alleged mastermind, and adjourned custody hearings for Balaji to 19 May. With several accused providing key leads, SIT officials anticipate more high-profile arrests. Investigators believe the case exposes deep-rooted administrative and financial irregularities under the previous YSRCP regime, marking it as one of the largest corruption scandals in the state’s recent history.
