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SC denies YSRCP MP Midhun Reddy relief from arrest in AP liquor scam case
Reddy had moved the top court challenging the Andhra Pradesh high court’s July 15 rejection of his anticipatory bail plea.
The Supreme Court on Friday declined to grant YSRCP parliamentarian PV Midhun Reddy protection from arrest in connection with the alleged multi-crore liquor scam being probed by the Andhra Pradesh Crime Investigation Department (CID).
Reddy sought time from the Supreme Court to surrender after being issued a lookout notice by the Special Investigation Team (SIT) of the CID in connection with the corruption probe involving the Andhra Pradesh State Beverages Corporation Limited (APSBCL). However, his request was not entertained.
A bench comprising Justices JB Pardiwala and R Mahadevan dismissed Reddy’s plea, in which he alleged that his arrest was politically motivated and that he had no role in APSBCL’s liquor procurement policy during the YSRCP government’s tenure (2019–2024).
Reddy had moved the top court challenging the Andhra Pradesh high court’s July 15 rejection of his anticipatory bail plea. Representing him, senior advocate Abhishek Manu Singhvi, along with advocate Mahfooz Ahsan Nazki, argued that the CID had earlier admitted in court that it had found no incriminating evidence against Reddy. Singhvi added that Reddy had been cooperating with the investigation and questioned the necessity of arrest.
As the bench remained unconvinced, Singhvi requested a week’s time for Reddy to surrender. The court declined to respond, closing the matter with a terse, “We will not say anything.”
Appearing for the state, senior advocate Mukul Rohatgi cited two similar cases involving co-accused whose bail pleas had previously been rejected by the Supreme Court. He emphasized that the probe was at a crucial juncture and any leniency could hinder the investigation.
The alleged scam, estimated at ₹3,200 crore, involves manipulation of excise policies to favour certain liquor companies in exchange for kickbacks. The inquiry began after a complaint from Y Venkateswar Rao Srinivas flagged irregularities in APSBCL operations between October 2019 and March 2024. The complaint alleged that contracts were awarded to dubious new liquor brands linked to YSRCP leaders while sidelining established ones.
A five-member committee formed by the excise department and APSBCL found major procedural lapses, including the shift from a transparent online procurement system to a manual one — creating scope for manipulation. Based on this, the state recommended a CID probe.
The CID registered an FIR on September 23, 2024, under IPC Sections 420 (cheating), 409 (criminal breach of trust), and 120B (criminal conspiracy). Reddy was added as an accused on April 22, 2025.
Earlier, the Supreme Court had granted him interim protection on the condition that he cooperated with the probe. But on May 13, the court sent the matter back to the high court to decide his bail plea on merits — which eventually led to the current rejection.
Reddy is alleged to be a key conspirator. The SIT found that a significant amount of money from a suspected shell company was transferred to PLR Projects Pvt. Ltd., a company linked to Reddy’s relatives. Witness testimonies also reportedly implicate him in the scheme.
