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In a key development in the alleged liquor scam under the previous YSRCP government in Andhra Pradesh, police have seized Rs 11 crore cash from a farmhouse near Hyderabad allegedly linked to the main accused, Kessireddy Raja Shekhar Reddy (Raj). Raj was the IT advisor to former Chief Minister YS Jagan Mohan Reddy.
Soon after the cash was seized from Sulochana Farms in Shamshabad owned by Teegala Bali Reddy on July 30, Raj filed an affidavit claiming that he has no connection with the seized cash, alleging that the police was making a false allegation to weaken his chances of being granted bail.
Bali Reddy’s sons, Teegala Upender Reddy and Teegala Vijender Reddy are partners in UV Distilleries, one of the firms named in the liquor scam case. According to the SIT, the brothers were nominal partners in the company despite no prior experience in the liquor sector. “Both the partners are also connected through multiple ventures with other accused individuals,” the SIT’s recently filed chargesheet said.
In the alleged liquor scam, bribes amounting to Rs 3,500 crore were allegedly collected by Raj and others including several YSRCP leaders. After the previous YSRCP government took over the liquor business in Andhra Pradesh with the promise of phased prohibition, the accused allegedly misused the liquor policy to replace popular liquor brands with lesser known brands, in exchange for bribes.
The money was allegedly distributed to voters during the 2024 Assembly and general elections in Andhra Pradesh, as bribes to vote for YSRCP, the SIT said in its preliminary chargesheet filed on July 19.
This is the first reported instance of cash seizure of such a huge amount in the case.
In his affidavit to the court of Special Public Prosecutor (SPE) and Anti-Corruption Bureau (ACB) in Vijayawada, Raj said that the farmhouse owner Bali Reddy’s son Vijender Reddy Teegala runs many businesses which make crores.
Raj said that his wife was a minor stakeholder in Arete Hospitals headed by Vijender Reddy. “Except that I have no connection or relationship with that business group,” Raj said.
Vijender Reddy is also involved in various businesses related to diagnostic services and film production. He is one of the partners in Vyra Entertainments which has produced films such as Hi Nanna (2023) and Matka (2024).
“It is being projected by the prosecution that the money that was allegedly seized belongs to me which is an utter falsehood and lie… the said allegation is only to bleak my chances of getting bail,” Raj said in his affidavit.
The Special Investigation Team (SIT) investigating the alleged liquor scam seized the Rs 11 crore cash based on the testimony of one of the accused, Varun Purushottam, according to reports.
An engineering graduate from Hyderabad, Varun was allegedly hired as Andhra Pradesh Operations Head of Leela Distillery, one of the liquor companies named in the alleged scam. According to the police, crores of rupees in bribes collected from liquor companies in exchange for supply orders from the Andhra Pradesh government between 2020 and 2024.
According to the chargesheet, Raj “forcibly took over Leela Distillery by threatening and coercing its original owners.” He then allegedly appointed Varun as the Operations Head for Andhra Pradesh, and made him handle kickbacks received in cash, according to the SIT.
As per the chargesheet, the Andhra Pradesh State Beverages Corporation Limited (APSBCL) credited a total amount of Rs 454 crore to Leela Distillery, of which kickbacks worth Rs 62 crore are estimated to have been channeled back to the accused through shell companies and other methods.
It also mentioned that between FY 2020-21 to FY 2023-24, the Teegala brothers’ UV Distilleries was one of the largest liquor suppliers to APSBCL, generating a turnover of nearly Rs 224 crore. “An estimated Rs 29.80 crores was calculated as kickbacks paid to the syndicate based on the quantity and price pushed through APSBCL,” the chargesheet said.
After the YSRCP’s defeat in the 2024 Assembly election, Raj allegedly helped Varun and several other accused flee to Dubai to escape the police, the chargesheet said. He was returning to Hyderabad from Dubai when he was arrested at the airport by SIT on July 29.
According to reports, Varun led the police to the cash stashed in the farmhouse.
