The sudden decision by the Chandrababu Naidu-led Andhra Pradesh government to relieve Donthireddy Vasudeva Reddy, the former Managing Director of AP Beverages Corporation and the prime accused in the alleged liquor scam during the Jagan Mohan Reddy regime, has raised several eyebrows.
Late on Thursday, the government issued orders relieving Vasudeva Reddy from his duties in Andhra Pradesh and repatriating him to his parent department — the Indian Railways — with immediate effect.
The move has surprised political observers, especially since the Crime Investigation Department (CID) is actively investigating the liquor scam and is reportedly closing in on key accused individuals.
YSR Congress Party MP P Mithun Reddy, who is also facing allegations in the case, was recently denied anticipatory bail, while another key figure, Kasireddy Rajasekhar Reddy (also known as Raj Kasireddy), has filed a bail petition in the High Court.
The CID had already registered a case against Vasudeva Reddy in connection with the scam, and his anticipatory bail plea had been rejected by the court. Despite this, he has not been arrested and has, so far, avoided prosecution.
Vasudeva Reddy was originally deputed from the Indian Railways to serve in Andhra Pradesh in August 2019, shortly after Jagan Mohan Reddy became Chief Minister.
Though his deputation officially ended in August 2024, the state government retained him, citing the ongoing investigation, and requested an extension from the Railways.
In response, the Railways extended his deputation until February 25, 2025. However, with that period nearing its end, official sources said: “The state government sought a further extension of his deputation, but the Railway Ministry denied the request. As a result, the government was compelled to relieve him and send him back to his parent department.”
However, sources indicate that Vasudeva Reddy may have used political influence to escape prosecution. He is reportedly close to a former YSRCP MLA who recently joined the Jana Sena Party. It is believed that this connection helped him avoid punitive action.
According to investigators, Vasudeva Reddy had revealed key details during questioning — including the procurement of liquor from specific distilleries and manipulation of pricing.
He reportedly submitted evidence showing that liquor prices were deliberately inflated to collect commissions, which were allegedly funneled to senior YSRCP leaders.
