Bottled Greed
- Correspondent
- Jul 20
- 3 min read
A massive liquor scandal exposes Andhra Pradesh’s circular politics of vendetta, offshore money trails, and electoral manipulation.

The arrest of P.V. Midhun Reddy, Member of Parliament and floor leader of the YSR Congress Party (YSRCP) in the Lok Sabha, by the Special Investigation Team (SIT) of the Andhra Pradesh Police marks a turning point into a byzantine probe that has grown from a bureaucratic irregularity into a transnational money-laundering operation.
The charges against Reddy of criminal conspiracy, cheating, breach of trust, and laundering illicit funds through shell companies, relate to a liquor policy scam that allegedly cost the state Rs. 3,200 crore during the previous government’s tenure.
According to the SIT, Reddy played the role of “core conspirator” by designing liquor policy changes that suppressed popular alcohol brands in favour of obscure labels linked to politically connected distilleries. These firms, in return, allegedly paid hefty kickbacks routed through a constellation of dummy firms and offshore accounts. The funds, officials claim, were then funnelled into the 2024 general elections, securing “undue political advantage” for the ruling party at the time. Reddy’s arrest is the twelfth in the case, and more are expected.
The scandal’s trail leads not only through Andhra Pradesh but also to Dubai. Investigators found that a luxury apartment in the emirate owned by a businessman named Shravan Rao and allegedly linked to primary accused Raj Kasireddy had served as a safehouse for key players. The SIT has noted that Kumar made 29 trips to Dubai since the investigation began, raising suspicions of hawala transactions and foreign asset concealment. The Enforcement Directorate (ED), working in tandem with the SIT, has begun attaching properties in both Hyderabad and Dubai that are believed to have been acquired with scam proceeds.
This is hardly Andhra Pradesh’s first flirtation with scandal. The state’s politics has long been steeped in a pattern of vendetta, corruption, and dynastic ambition. The YSRCP itself was born of such a moment. Founded by Y.S. Jagan Mohan Reddy in 2011 after a falling-out with the Congress leadership, the party rode to power in 2019 on the legacy of his father, Y.S. Rajasekhara Reddy. Yet even before assuming office, Jagan was already under investigation by the Central Bureau of Investigation (CBI) and the ED for allegedly amassing over Rs. 43,000 crore in disproportionate assets through quid pro quo dealings during his father’s tenure as Chief Minister. While legal proceedings lingered, political dominance kept enforcement at bay.
Current CM Chandrababu Naidu brings no clean sheet either. In 2023, Naidu was arrested in the AP Skill Development scam, accused of diverting Rs. 371 crore via shell companies. Then in opposition, Naidu cried foul. Today, his government calls the arrest of Midhun Reddy a lawful culmination of due process.
Yet, vendetta politics alone cannot explain the scale and brazenness of the alleged liquor scam. This was not policy failure but premeditated design. Government channels, according to the SIT, were used to nudge out established liquor brands in favour of lesser-known labels tied to political financiers. Liquor retailers were reportedly pressured to stock only approved products.
The arrest of a sitting MP makes the scandal unusually potent. It lifts the veil not only on how Indian elections are funded but also on the shifting geography of corruption. Dubai’s role as a bolt-hole and laundering hub, already well-known from past cases like that of diamond tycoon Nirav Modi, reappears here.
That trail now leads into Telangana, where Raj Kasireddy allegedly used the scam’s proceeds to buy 90 acres near a key industrial corridor outside Hyderabad. Of this, 60 acres were already sold at a profit. The remaining land, along with high-value properties in prime locations, is now under scrutiny.
The bigger question is whether this investigation marks a genuine pivot toward accountability, or merely another round in Andhra Pradesh’s unending carousel of power, privilege and payback. Each government seems fated to dig up its predecessor’s scandals, only to later bury its own. For now, the liquor may be off the shelves. But its bitter political aftertaste lingers and like any good spirit, it won’t evaporate quickly.





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