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ED questions ex-YSRCP MP in Andhra liquor case
ED interrogated ex-YSR Congress leader V Vijay Sai Reddy for seven hours over a ₹3,500 crore liquor scam linked to Andhra's former CM Jagan Mohan Reddy.
The Enforcement Directorate (ED) on Wednesday grilled former YSR Congress party leader and ex–Rajya Sabha MP V Vijay Sai Reddy for nearly seven hours in connection with the ₹3,500 crore liquor scam that allegedly took place during the regime of former Andhra Pradesh chief minister Y S Jagan Mohan Reddy, people familiar with the matter said.
A three-member team of ED officials questioned Sai Reddy at their Hyderabad office extensively on the formulation and implementation of the liquor policy, alleged illegal cash collections, suspected hawala transactions, and the routing of funds through shell companies.
An official privy to the development said the investigators sought explanations from the former MP on why large sums were allegedly collected in cash instead of digital modes and whether the proceeds were diverted to foreign destinations.
During the questioning, Sai Reddy is understood to have stated that meetings related to the liquor policy were held on three occasions in his presence. However, he reportedly maintained that he had no direct role in designing or implementing the policy.
The ED officials nonetheless questioned him in detail on policy-related decisions as well as alleged clandestine financial transactions linked to its execution. The probe also focused on allegations of cash movement abroad, the creation of shell companies, and transactions routed through such entities.
The agency reportedly sought specific details on the ultimate beneficiaries behind these companies, indicating a deeper scrutiny of the alleged money trail. Sai Reddy is said to have submitted several key documents related to financial transactions, which were taken into custody after his statement was formally recorded.
The case is being investigated by the ED under provisions of the Prevention of Money Laundering Act. The agency registered an Enforcement Case Information Report (ECIR) on May 6, 2025, based on a First Information Report filed earlier by the Andhra Pradesh Special Investigation Team (SIT) on September 23, 2024, to probe the case from the angle of corruption and policy manipulation.
The SIT had reportedly found evidence suggesting large-scale financial irregularities, illegal cash transfers to shell companies, and corruption in the formulation of the liquor policy, allegedly coordinated from Hyderabad.
While the SIT focused on alleged corruption and administrative irregularities, the ED has taken over the case from a money-laundering perspective and issued notices to Sai Reddy, directing him to appear for personal examination.
