If reports from New Delhi are any indication, the Central government is likely to intervene and initiate a probe into the alleged liquor scam that occurred during the YSR Congress Party regime led by Y S Jagan Mohan Reddy between 2019 and 2024.
According to sources, the Centre may direct the Enforcement Directorate (ED) to investigate possible money laundering linked to the liquor scam, which allegedly involves individuals close to the previous administration.
Lavu Sri Krishna Devarayalu, the Telugu Desam Party MP from Narasaraopet, has already raised the issue in the Lok Sabha, claiming that over ₹4,000 crore was illegally transferred to foreign countries as part of the scam.
On Tuesday night, Krishna Devarayalu held a one-on-one meeting with Union Home Minister Amit Shah, during which he submitted key documents related to the alleged scam. He reportedly urged the Centre to investigate the money laundering aspect of the case.
Earlier, Krishna Devarayalu had also met with Chief Minister N Chandrababu Naidu, calling for a comprehensive probe. A Special Investigation Team (SIT), appointed by the Naidu government, is already looking into the matter.
Preliminary findings by the SIT have allegedly traced kickback money trails involving a sitting Lok Sabha MP and a former Rajya Sabha MP from the YSR Congress Party.
The investigation has also uncovered details on how cash was collected and circulated. Notably, between 2019 and 2024, only cash payments were accepted at liquor shops, as digital transactions were barred.
The SIT has recorded statements from liquor manufacturers under Section 164 of the CrPC, which have reportedly confirmed the existence of a scam estimated at ₹4,000 crore.
Most manufacturers claimed that ₹150 to ₹200 was extorted per case of liquor, amounting to kickbacks of nearly ₹80 crore per month.
During Jagan Mohan Reddy’s tenure, private liquor stores were abolished, and only government-run outlets were allowed to operate in the state.
This centralization of the liquor trade allegedly enabled the political leadership to implement a systematic kickback scheme under the guise of government control.
