E-Paper
SC rejects bail plea of prime accused in ₹3.5K-crore liquor fraud case in Andhra
The Supreme Court denied bail to Raj Kesireddy, the main accused in a ₹3,500-crore liquor fraud, citing his central role and the case's magnitude.
The Supreme Court on Thursday refused to entertain the bail petition of Kesireddy Rajasekhar Reddy alias Raj Kesireddy, the prime accused in the ₹3,500-crore liquor fraud that allegedly took place during the previous regime of YSR Congress Party (YSRCP) in Andhra Pradesh.
A division bench headed by Chief Justice of India (CJI) Surya Kant, described Raj Kesireddy as the prime architect of the liquor fraud and said there was a criminal nexus between bureaucrats and political leaders in the case.
The CJI made it clear that the apex court would neither grant bail nor issue notice in the case. He observed that corruption of such magnitude is not possible without a criminal nexus between bureaucrats and political leaders.
The special investigation team of the Andhra Pradesh police, in its charge sheet, named Raj Kesireddy, former information technology advisor to the Jagan Mohan Reddy government, as the prime accused who allegedly played a central role in the fraud. He was arrested in April 2025.
Other key names in the charge sheet include, YSRCP MP Peddireddy Mithun Reddy, former YSRCP general secretary V Vijayasai Reddy, retired IAS officer K Dhanunjaya Reddy, who served as secretary in the chief minister’s office, former CM’s officer on special duty (OSD) P Krishna Mohan Reddy, full-time director of Bharathi Cements Govindappa Balaji, former Andhra Pradesh State Beverages Corporation Limited (APSBCL) managing director D Vasudeva Reddy, APSBCL special officer Satya Prasad, and former director of SPY Agro Industries Sajjala Sridhar Reddy.
According to the charge sheet, the total amount embezzled in the alleged liquor fraud in the form of kickbacks was ₹3,570.87 crore.
It has detailed the categorisation of the syndicate, year-wise breakdown of bribes collected, the method of determining commissions per liquor brand and how the conspiracy was executed.
Senior advocate Ranjit Kumar, appearing for Kesireddy, brought to the notice of the court that his client was only an advisor to the government and had no role in the alleged liquor .
“Moreover, he has already been in jail for the last 10 months and so, he deserves regular bail,” he argued.
The CJI, however, dismissed the argument and said the magnitude of the liquor fraud was too huge.
“He was not just an advisor but the architect of the whole fraud. It is not a small offence and there is nothing wrong if the prime accused remained in jail for some more period,” he said.
The top court allowed the petitioner’s counsel to withdraw the plea and granted liberty to the petitioner to approach the trial court or the high court at an appropriate stage.
