The Special Investigation Team (SIT) in Andhra Pradesh is close to completing its probe into alleged corruption in the state’s liquor sector between 2019 and 2024.
Reports suggest that kickbacks worth ₹4,000 crore were collected over five years under the previous YSRCP government. The newly elected NDA government formed the SIT on 5 February to investigate the alleged irregularities.
Liquor manufacturers reportedly cooperated with investigators. They claimed that ₹150-200 per case was allegedly extorted from them each month. This amounted to nearly ₹80 crore in kickbacks every month. Statements from key industry players suggest that a YSRCP MP was running the scheme.
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Sources indicate that the money was routed through two officials. Two YSRCP leaders have also been named as suspects. Investigators believe the scam was linked to former Chief Minister Jagan Mohan Reddy’s 2019 election promise of prohibition. Under this policy, private liquor stores were banned, allowing only government-run outlets to sell alcohol.
With state control over liquor sales, national brands were allegedly pressured to leave the market. This allowed local manufacturers to dominate the industry, raising concerns over quality standards. Reports indicate that all major liquor brands exited Andhra Pradesh over the last five years due to alleged extortion demands.
Under the NDA government’s new policy, national and global liquor brands have now re-entered the Andhra Pradesh market. The SIT is expected to submit its findings soon.
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