ED Moves Against Liquor Syndicate: ₹441.63 Crore Properties Attached in AP Liquor Scam Probe
(Judicial Quest News Network)
Hyderabad, 6, February,2026- The Directorate of Enforcement, Hyderabad, has attached movable and immovable assets worth ₹441.63 crore in connection with the Andhra Pradesh liquor scam, targeting properties linked to Kessireddy Rajasekhara Reddy his family, associates Booneti Chanakya, relatives of Donthireddy Vasudeva Reddy and other connected entities under the Prevention of Money Laundering Act, 2002.
The seized assets include bank balances, fixed deposits, land parcels, and other immovable holdings.
The Enforcement Directorate has launched its probe into the Andhra Pradesh liquor scam on the basis of an FIR registered by the State CID under Sections 120-B, 409, and 420 of the Indian Penal Code, following a complaint from the Principal Secretary to the Government alleging a staggering loss of ₹4,000 crore to the public exchequer.
Investigations under the Prevention of Money Laundering Act have revealed that, until 2019, the liquor trade in Andhra Pradesh was governed by a transparent, software-driven system ensuring end-to-end digital tracking of procurement, supply, and sales, thereby creating a verifiable electronic audit trail.
However, after the 2019 Assembly elections, the newly formed government centralized retail liquor operations through Government Retail Outlets run by the Andhra Pradesh State Beverages Corporation Limited (APSBCL).
In what investigators describe as a criminal conspiracy, the automated system was deliberately dismantled and replaced with a manual regime, vesting unchecked discretionary powers in APSBCL officials for issuing Orders for Supply (OFS).
This opaque framework was allegedly misused to sideline established liquor brands, which were systematically marginalized or eliminated from the market.
Investigators have uncovered that, alongside sidelining established liquor brands, preferential and irregular allocations were extended to select ‘favoured’ labels in exchange for hefty kickbacks.
As part of this scheme, the cartel engineered the introduction of ‘similar-sounding brands’ (SSBs) with artificially inflated base prices.
This manipulation allowed distilleries producing such brands to rake in surplus margins, which were then diverted to meet the illegal monetary demands of the syndicate. The PMLA probe further revealed that distilleries were coerced into paying kickbacks ranging from 15 to 20 percent of the basic price per case as a precondition for securing Orders for Supply (OFS).
Those manufacturers who resisted compliance faced punitive measures, including withholding of legitimate dues and outright rejection of supply orders, effectively forcing them out of the market.
The ED investigation uncovered a multi-crore liquor scam in Andhra Pradesh orchestrated by Sh. Kessireddy Rajasekhara Reddy and syndicate members, manipulating APSBCL procurement and distribution, causing an estimated Rs. 3,500 crore loss to the state exchequer.
Kickbacks totalling approx. Rs. 3,500 crores were collected by Reddy in collusion with Booneti Chanakya (alias Prakash), Muppidi Avinash (alias Sumeeth) Tukekula Eswar Kiran Kumar Reddy Paila Dileep, Mohammed Saif (alias Saif Ahmad), and others.
Communications occurred via encrypted VOIP calls and Signal to hide identities.
The syndicate-controlled distilleries like M/s Adan Distillery Pvt. Ltd., M/s Leela Distilleries Pvt. Ltd. and M/s U.V. Distilleries, securing disproportionate business through political influence for illicit gains. Liquor transport tenders were rigged awarding a centralized contract to M/s Sigma Supply Chain Solutions Pvt. Ltd. at inflated rates operational control lay with syndicate members like T. Eswar Kiran Kumar Reddy and Saif Ahmad.
Contract proceeds were diverted via conduits like TEKKR, Arroyo, and Ezyload.
Distilleries used fictitious vendors for inflated invoicing of non-supplied raw materials and packaging, converting funds to unaccounted cash. Proceeds were laundered into real estate via entities like M/s Eshanvi Infra Projects Pvt. Ltd., M/s ED Entertainment, M/s Uni Corporate Solutions Pvt. Ltd., and M/s Tag Developers, using back-dated agreements to legitimize funds.
A web of shell entities (Olwick, Kripati, Nysna Multiventures, Arroyo, Ezyload, DCart) layered transactions to conceal origins.
The scam generated ~Rs. 100 crore monthly illegal revenue. Physical cash kickbacks were stored in Hyderabad locations, handled by syndicate operatives.
ED traced Rs. 1,048.45 crore money trail in cash, gold, distillery control, and transport gains.
Proceeds funded immovable properties and personal enrichment; substantial amounts were concealed or dissipated. Investigation continues under PMLA.
