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SC grants bail to Avinash Reddy in ₹3,200-crore Andhra Pradesh liquor policy case
The CID had registered an FIR on September 23, 2024, under charges of cheating, criminal breach of trust, and criminal conspiracy.
The Supreme Court on Friday granted bail to Andhra Pradesh liquor policy accused Muppidi Avinash Reddy, considered a key link in the alleged ₹3,200-crore case and a relative of the main accused Kasireddy Rajashekhar Reddy.
A bench headed by Chief Justice of India Surya Kant passed the order after noting that Reddy’s custodial interrogation was complete and that several co-accused in the case had already been granted bail.
Reddy had moved the court against the rejection of his anticipatory bail by the Andhra Pradesh high court on January 29.
The bench, also comprising justices Joymalya Bagchi and Vipul M Pancholi, said, “Without expressing any opinion, we allow the petition by invoking our power under Article 142 to grant him regular bail subject to his furnishing bail bonds to the satisfaction of the trial court.”
The court, on February 24, had refused to grant him interim protection after learning that he had fled to Sri Lanka to evade arrest. The bench said at the time that it would consider his plea only if he returned to the country and surrendered to the police.
On February 26, Reddy surrendered as per the court’s order and was subjected to custodial interrogation. Senior advocate Siddharth Dave, appearing for Reddy, pointed out that 11 co-accused in the case are out on bail while a few others are still in jail. Dave argued that Reddy was unnecessarily being dragged into the investigation on account of being a relative of the main accused, K Rajashekhar Reddy.
The state refuted this claim and said that Reddy’s custodial interrogation is crucial to the case as he is alleged to have collected and transferred kickbacks received by the main accused.
Senior advocate Siddharth Luthra, representing the Andhra government, sought an additional 10 days to further interrogate Reddy. The bench, however, declined the request by noting that its earlier direction requiring the accused to surrender had already been complied with.
The state believes the kickbacks amount to ₹3,200 crore, with the allegation that the excise policy was manipulated to benefit certain companies. The matter dates back to between October 2019 and March 2024, and the allegation is that the beneficiary companies were those with links to leaders of the YSR Congress Party (YSRCP), which was then in power in the state.
The CID had registered an FIR on September 23, 2024, under charges of cheating, criminal breach of trust, and criminal conspiracy under Sections 420, 409 and 120(B) of the Indian Penal Code, 1960, and the investigation is currently underway.
