In a major political development, the Andhra Pradesh Special Investigation Team (SIT) has arrested sitting YSR Congress MP Peddireddy Midhun Reddy over his alleged involvement in a staggering ₹3,200 crore liquor scam.
The arrest came on Saturday after a marathon seven-hour interrogation at the state CID office. Officials confirmed Reddy, listed as accused number four in the sprawling case, is set to face a judge in Vijayawada on Sunday.
The SIT summoned Reddy a day after the Supreme Court rejected his plea for anticipatory bail. The court declined to grant him protection from arrest, noting that his alleged involvement warranted further investigation.
Officials said the interrogation focused on alleged commission flows from liquor manufacturers into shell companies and ultimately to political or private beneficiaries. Reddy was reportedly shown documents and electronic evidence collected during the investigation and asked to respond.
While questioning was underway, the SIT submitted a 300-page preliminary chargesheet to the Vijayawada court. The chargesheet includes over 100 forensic lab reports, statements from 268 witnesses, and the seizure of assets totaling ₹62 crore. Eleven individuals have given recorded statements.
The SIT stated it would file a more detailed follow-up chargesheet within 20 days. For now, while Reddy’s name appears in the existing document, his precise role remains unclear.
Reddy is the twelfth individual arrested in connection with the case. Others previously detained include former IT advisor Kasireddy Rajasekhar Reddy, SPY Agro Industries MD Sajjala Sridhar Reddy, and several others linked to the liquor and cement industries.
The investigation was launched following a complaint from Y Venkateswar Rao Srinivas, who accused the Andhra Pradesh State Beverages Corporation Limited of irregular liquor procurement during the YSRCP government’s term from October 2019 to March 2024.
Srinivas claimed that new and lower-quality liquor brands were favored over established ones, with kickbacks paid for these preferential deals. Some of the new brands were allegedly produced by distilleries linked to YSRCP leaders.
A five-member internal committee under the excise department confirmed that APSBCL had suppressed popular brands and granted illegal advantages to select companies.
Following the Supreme Court decision, the SIT also issued a lookout circular for Reddy earlier this month to prevent him from leaving the country.
Meanwhile, the YSR Congress Party condemned the arrest. Party spokesperson and former MLA Malladi Vishnu said the move was politically motivated and targeted individuals close to party chief Jagan Mohan Reddy.
“This is part of a larger vindictive campaign,” Vishnu said. “The SIT failed to present any direct link between Midhun Reddy and the scam. The court asked for details, and there was no clear answer.”
He also accused the current government, led by Chief Minister N Chandrababu Naidu, of attempting to undermine the opposition through legal harassment.
“The more aggressive these actions become, the more determined we are to respond,” Vishnu said.
The SIT has yet to confirm whether more arrests are expected as the investigation continues.
