Liquor scam: Midhun Reddy remanded to judicial custody

Vijayawada: YSR Congress Party MP PV Midhun Reddy, arrested by Andhra Pradesh Special Investigation Team (SIT) in connection with the alleged liquor scam case, has been remanded to judicial custody till August 1. Following his arrest on Saturday night, he was taken for a medical examination to Vijayawada Govt Hospital on Sunday and later produced before the ACB Special Court in the city.

As per the remand report filed by the SIT, Midhun Reddy has been named as accused No. 4 (A4) in the case related to alleged irregularities in the state's liquor policy between 2019 and 2024, resulting in a "misappropriation" of about 3,500 crore.

The report alleges that Midhun Reddy played a role in orchestrating policy changes and coordinating with co-accused to secure kickbacks from distilleries and suppliers. He allegedly influenced public servant Satya Prasad (A3) by promising a promotion and facilitating his appointment as special officer to implement the policy changes. The SIT further alleged that Midhun Reddy influenced officials of the Andhra Pradesh State Beverages Corporation Limited (APSBCL), participated in meetings, and gave instructions that caused financial loss to the state. Kickbacks were routed allegedly through entities including SPY Agro, Sanhoc Labs, and Dcart Logistics. A payment of 5 crore was allegedly made to PLR Projects Pvt. Ltd., a company linked to his family. The report also alleges his financial interests in Shiva Shakthi Dairy Pvt. Ltd., where his mother and sister are directors.

The report outlines that shell companies were used to move the funds and that several witnesses, identified as LWs.108, 113, and 121, confirmed his involvement. The funds were allegedly used during the 2024 elections across constituencies in Andhra Pradesh.

According to the remand report, Midhun Reddy has information about the collection and distribution of cash through commissions and the methods of transportation. The offences are punishable by over ten years of imprisonment.

The SIT has sought custodial interrogation to gather details regarding fund movements, the roles of other individuals involved, and documentation related to the transactions. The report also stated that his connections and position may allow him to influence witnesses or tamper with evidence. It added that he had earlier failed to cooperate with the investigation and that a Look Out Circular had been issued.