The Enforcement Directorate (ED) has begun the mechanical work of dismantling a ₹3,500 crore hole in the Andhra Pradesh state budget. On Monday, investigators in Hyderabad interrogated four key figures, including Dhanunjaya Reddy and Krishnamohan Reddy, regarding a systematic diversion of liquor revenues. The agency has frozen ₹441.63 crore in assets—a sprawl of land, bank balances, and fixed deposits—linked to a network that allegedly rewired the state’s alcohol trade into a private collection apparatus.
"The money did not just vanish; it moved through ' Mule Accounts ' and ' Shell Companies ' designed to mask the origin of the state’s missing billions." — Framing of the ED's current tracing efforts.
Investigators have traced a specific money trail of ₹1,048.45 crore in kickbacks extracted from distilleries. The architecture of the alleged fraud was not subtle:
Forced Commissions: Distilleries were reportedly coerced into paying 15% to 20% per case of liquor to secure market access.
Manual Cash Sales: Large volumes of alcohol were sold for paperless cash, bypassing digital tracking systems.
Preferential Bottling: Specific brands were given "shelf priority" while others were throttled, creating an artificial monopoly.
The Sigma Link: Lucrative transportation contracts were allegedly steered toward Sigma, a company favored by the administrative gatekeepers.
The Cost of the Monopoly
The ED's scrutiny focuses heavily on Donthireddy Vasudeva Reddy, the former Managing Director of the Andhra Pradesh State Beverages Corporation Limited (APSBCL). Evidence suggests he used his position to demand bribes ranging from ₹65 to ₹78 per case from suppliers.
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| Asset Category | Value (Approx.) | Primary Targets |
|---|---|---|
| Attached Property | ₹441.63 Crore | Vasudeva Reddy, Raj Kesireddy, B. Chanakya |
| Traced Kickbacks | ₹1,048.45 Crore | Syndicate Entities |
| Estimated State Loss | ₹3,500 - ₹4,000 Crore | Andhra Pradesh Exchequer |
| Relative-linked Assets | ₹95.80 Crore | Vasudeva Reddy's Kin |
The Machinery of Siphoning
The probe suggests the previous government's liquor policy wasn't just flawed, but intentionally jagged. By ' Internalizing Distribution ', the state created a bottleneck where bureaucrats could demand ' Protection Fees '. In September 2025, raids across 20 sites in five states—including Delhi and Tamil Nadu—unearthed a web of jewellers and packaging firms used to ' Launder ' the proceeds.
Kessireddy Rajasekhara Reddy and Booneti Chanakya are named alongside Vasudeva Reddy as the primary architects of this financial plumbing. The ED claims the scam didn't just enrich individuals but functioned as a monthly ' Revenue Stream ' for political beneficiaries, allegedly totaling ₹50–₹60 crore every thirty days.
Chronology of the Collapse
The investigation took on a ' Reflective Tone ' after the Special Investigation Team (SIT) verified the initial excise reports.
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Late 2024: SIT identifies initial irregularities in the APSBCL ledger.
September 2025: ED launches multi-state raids, seizing documents from jewelry houses and medical institutes.
March 2026: Massive attachment of properties; over 400 crore in assets seized under the Prevention of Money Laundering Act (PMLA).
Current Status: Questioning continues in Hyderabad to identify the ultimate destination of the remaining ₹2,500 crore.
The state's excise system, once a source of public welfare funding, was effectively turned into a private toll booth for those holding the keys to the warehouse.
