A special court in Andhra Pradesh has delivered sharp criticism of the Special Investigation Team (SIT) probing the ₹3,200-crore liquor scam, while rejecting anticipatory bail pleas of two prime accused.
The Special Judge for ACB cases, Justice P Bhaskara Rao, raised concerns over the SIT’s handling of the case, remarking that the agency appeared to have adopted a “soft stance” towards the accused.
Bail petitions filed by Dontireddy Vasudeva Reddy, former managing director of the Andhra Pradesh State Beverages Corporation (APSBC), and D Venkata Satya Prasad, former special officer in the Revenue Department (Excise), were dismissed. Both are accused of playing central roles in the alleged liquor procurement and distribution racket during the previous YSR Congress regime.
The two senior officials argued they had cooperated with the SIT, appeared before investigators several times, and even expressed willingness to turn approvers. Their counsels claimed arrest at this stage would undermine their proposed approver status.
The court, however, rejected these arguments. Justice Rao observed that their role in the scam was “pivotal and central” and stressed that in economic offences of such magnitude, the prosecution “is not expected to take the principal or prime accused as approvers.”
Also read: SIT alleges direct link to ex-CM Jagan in Andhra liquor scam
He further remarked: “They are clearly bargaining with the court which amounts to undermining judicial dignity. Their approach also clearly reflects there was a bargain struck between the investigating agency and the petitioners.”
Notably, the SIT itself did not oppose anticipatory bail for the two officials, seeking only conditional restrictions such as a ban on foreign travel and communication with co-accused. This perceived leniency drew particular censure from the court.
The liquor scam probe was initiated after the Telugu Desam Party (TDP) returned to power in June 2024. Investigations revealed what officials described as a “large-scale criminal conspiracy” involving manipulation of procurement, supply, and distribution of liquor between October 2019 and March 2024.
So far, two chargesheets have been filed, naming 10 individuals and nine companies. Among those arrested are retired IAS officer K Dhanunjay Reddy, former secretary to then Chief Minister YS Jagan Mohan Reddy, and P Krishna Mohan Reddy, Jagan’s former Officer on Special Duty (OSD).
The court’s comments come amid allegations of institutional compromise. High Court advocate and TDP Legal Cell member V V Lakshminarayana claimed in a verified message that the Advocate General’s office had been pressuring public prosecutors to adopt a lenient stance and avoid opposing bail applications.
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