According to the chargesheet, kickback proceeds were first handed to Kesireddy Rajasekhar Reddy—described as the “mastermind and co‑conspirator”—who allegedly channelled proceeds through Vijay Sai Reddy, P V Midhun Reddy and Balaji Govindappa before they reached Jagan. The SIT claims it uncovered testimony and corroboration pointing to the monthly collection of ₹50–60 crore in bribes tied to the excise policy.
Further findings allege that Rajasekhar Reddy orchestrated manipulation of the state’s excise framework by replacing the automated Order for Supply system with manual procedures, embedding loyalists in the Andhra Pradesh State Beverages Corporation Limited, and erecting a network of at least 30 shell companies linked to illicit transactions. The chargesheet reportedly indicates large portions of illicit income were routed into land, gold, and luxury assets located in Dubai and Africa.
Amaravati’s SIT executed the arrest of sitting YSRCP MP P V Midhun Reddy after several hours of questioning. The police contend he played a central role in designing the excise policy and facilitating the kickback mechanism that financed party operations and the 2024 election campaign.
The Enforcement Directorate separately opened a money-laundering investigation under the Prevention of Money Laundering Act in May, filing an ECIR to probe the alleged financial misappropriation tied to the liquor policy.
The former chief minister responded on X, branding the charges as orchestrated theatrics aimed at diverting attention from the state’s real issues. He asserted that the charges were built on statements he claimed were extracted under duress, including threats, inducements and third-degree pressure. He accused the current administration led by Chandrababu Naidu of political vendetta, claiming the broader campaign amounted to harassment and manipulation of probe agencies.
In parallel, YSRCP leaders described the developments as vindictive. Former ministers Botcha Satyanarayana, Perni Venkatramaiah, Ambati Rambabu and others alleged the arrests formed part of a pattern of selective targeting by the state government to undermine opposition leaders.
The chargesheet also records a high-profile 2019 meeting at Hyderabad’s Park Hyatt organised by Y S Sajjala Sridhar Reddy. Distillery owners were allegedly threatened with exclusion from liquor orders unless they agreed to bribes of 12–20 per cent—a coercive strategy investigators contend formed the basis of extortion and kickback collection.
Progressing beyond policy details, court proceedings remain pending. The local court has yet to formally take cognisance of the chargesheet’s allegations against Jagan, Rajasekhar Reddy and others. Legal analysts note that naming someone as a recipient of illicit gains does not, in itself, establish criminal liability—especially where direct evidence remains contested.
The ED’s parallel investigation underlines concerns over fund flows and asset accumulation tied to political cycles, though public disclosures on seized assets remain minimal. The SIT is expected to seek further evidence, including financial records and witness testimonies, to substantiate claims of funnelled funds and asset diversion.
Meanwhile, Andhra Pradesh's political climate is increasingly charged as both ruling and opposition figures prepare for extended legal battles. The scandal exposes the influence of liquor policy on governance, underscoring how administrative frameworks can be leveraged for financial gain. The ongoing investigations may reshape public discourse ahead of upcoming electoral cycles and influence debates on institutional integrity in policymaking.