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VIJAYAWADA: The SIT remand report of Andhra Pradesh liquor scam suspect Booneti Chanakya, alias Prakash, names ex-CM Y S Jagan Mohan Reddy as “final recipient” of kickbacks from distilleries across the southern state.
The alleged racket started in 2019 and was meticulously operated through a network that the SIT report says was controlled by Jagan’s aide and prime accused K Rajasekhar Reddy, alias Raj Kasireddy. Chanakya played the “central role” in the syndicate.
The SIT describes the alleged scam as a case of “state capture”, with political clout being employed to “loot” the state’s liquor industry.
The remand report states that distilleries were allegedly coerced into paying up to 20% commission on payments released by Andhra Pradesh State Beverages Corporation Ltd. Failure to comply would result in their supply orders being withheld, it alleges.
A meeting in a Hyderabad hotel allegedly involving YSRCP functionary Sajjala Sridhar Reddy has been identified as the origin of what the SIT report terms a “coercive” policy, with distillers being warned that they would be blacklisted if they didn’t route supplies through the designated channels.
The remand report, purportedly based on evidence and statements of key witnesses, including Dodda Venkata Satya Prasad, former special officer at APSBCL, alleges that Chanakya collected cash on behalf of the syndicate.
Investigators say Rs 50-60 crore in kickbacks was allegedly collected each month and laundered through hawala operators in Hyderabad, Mumbai, and Delhi. These transactions were masked using fake GST invoices for non-existent promotional goods, gold coins, and garments, while VPNs and international virtual numbers helped avoid detection, the report states.
SIT alleges that the money trail leads from Rajasekhar Reddy to senior YSRCP functionaries, including former Rajya Sabha member V Vijayasai Reddy, YSRCP MP PV Mithun Reddy, YS Anil Reddy, Bharati Cements’ Govindappa Balaji, and finally to Jagan.
The remand report identifies Chanakya as the lynchpin, having full knowledge of how kickbacks were allegedly collected, routed and distributed, making his custodial interrogation pivotal to the probe. Brands associated with the syndicate allegedly benefited from increased promotion and shelf space. In contrast, few reputed brands were phased out.
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