₹3,500-Crore Andhra Liquor Scam: Former APSBCL MD Vasudeva Reddy Arrested

In a major development in the alleged ₹3,500-crore liquor scam in Andhra Pradesh , the Special Investigation Team (SIT) has arrested former APSBCL Managing Director Donthireddy Vasudeva Reddy , naming him Accused No. 2 in the case. He was produced before the ACB Court , which remanded him to judicial custody until February 27.

Investigators allege that irregularities occurred between 2019 and 2024 under a controversial excise policy , where a transparent online inventory system was bypassed and liquor supply orders were allocated manually. This manipulation allegedly enabled preferential treatment to select distilleries and caused an estimated ₹192 crore loss to the state exchequer . Kesireddy Rajasekhar Reddy has been named as A1 .

Probe findings indicate the existence of a coordinated syndicate involving officials and intermediaries that controlled supply logistics and allegedly collected kickbacks from liquor companies seeking procurement orders. Investigators suspect confidential sales and allocation data were misused to influence distribution and profits.

The case has expanded into a hawala network and money laundering probe, with authorities tracing funds routed through shell companies and intermediaries before being converted into cash or diverted abroad. The investigation, initially launched by the CID and later joined by the Enforcement Directorate (ED) , has already led to multiple arrests and questioning of key political and industry figures, triggering significant political controversy. Officials believe custodial interrogation and financial tracking will reveal additional conspirators, expose the diversion of funds, and uncover the full scale of the alleged corruption.