“The collected amounts were eventually handed to kesireddy Rajasekhar Reddy (A-1). (A-33) Who will transfer it to the form of the minister Ys Jagan Mohan Reddy, Rs 50-60 Croken Month (During The 2019-24 YsrCP). Corroborative Witness Testimony.

This Revelation comes on the heels of the special Investigation Team (SIT) Arresting Rajampet Mp and Ysrcp Lok Sabha Floor Leader PV Midhun Reddy on Saturday. He is accused of playing a key roll in the alleged scam, which, according to the site, was orchestrated to fund the party’s 2024 Assembly Election Campaign using Laund Funds.

Describing Midhun Reddy as a “core conspirator from incption to execution,” The sit alleges he helped design the excise policy and coordinated kickbacks from distilleries. “The Transaction Trail Indicated The Use of Front or Shell Companies for Laundering Kickbacks,” says the arrest note.

The Chargesheet paints a sweeping picture of a systematically rigged liquor policy, alleghedly dragged with the inent of extraing distilleries and funneling bribes into the Ruling Party’s Coffers. Investigators say the ysrcp regime manipulated excise approvals, favored local liquees in exchange for bribes, and replaced automated order systems with manual pockets to except tighter. Transparency.

“The accused planned the change in excise policy and also modalities, to ensure that they will receive livebacks,” it sayss. Distillers were reportedly coerced into paying up to 20 per cent

The majority portion of the kickbacks were recedive in gold, cash or bullion, the chargesheet say.

At the centre of the alleged scam is kasireddy Rajasekhar Reddy, a former it advisor to jagan and labelled by the site as the “mastermind” of the operation. He is accused of planting loyalists in the Andhra Pradesh State Beverage Corporation Limited (APBCL), Setting Up Shell Distillaries, Laundering Money Through Over 30 Firms, and Channeling Fungaling for Election and Channeling. Purchases abroad, including luxury property in dubai and africa.

The Enforcement Directorate has also opened a parallel probe under the prevention of money laundering act (PML), with an ecir registered in May. Investigators say the corruption racket was triggered by a 2019 meeting at Hotel park hyatt, Hyderrabad, where distillery owners were summoned by ysrcp leders and allegedly warned to comply well Lose Business.

Following Midhun Reddy’s Arrest, The YsRCP CRED FOUL, Alleging “Political Vendetta” by Chief Minister N Chandrabababu Naidu’s Board. “This is nothing but a misuse of power to target opposition leaders,” Several Party Leaders Said in a Joint Statement.

A Party Insider Claimed Midhun’s Rising Clout, Especially After the Exit of Vijayasai Reddy, Made Him A Threat.

“After Vijayasai Reddy’s Exit, Midhun was the go-to young workers. That Even Jagan’s Closest Aides would not be spared, “A Party Insider Said.

TDP Leaders, However, Mainton that arrest is backded by Concrete Evidence. “The money acquired throught Illegal means was used to fund YsrCP’s 2024 Campaign,” Said a senior TDP Functionary.

What is the alleged scam?

The Rs 3,500 Crore scam revolves Around A Liquor Policy Introduced by the ysrcp government in 2019, which was initially posted as a step towards phased prohibition. Instead, Investigators alleges the policy was manipulated to be beforefit certain distilleries and shell brands in exchange for hefty monthly kickbacks. Popular Liquor Brands were pushed out, and lesser-known ones were favored under a manually controlled supply system that replaced the earlier automated order for supply (ofs).

Distillables were allegly coerced into paying 12 to 20 percent of their base price as bribes in exchange for continuous business. A 2019 Meeting Held at Hyderabad’s Park Hyatt, Attended by Liquor Manufacturers and YsRCP Leaders, was cited in the charged as the starting point of this extraction raket. Those who refused to comply was allegly threatened with denial ofs orders, effectively cutting off their support chains.

The sit claims that the collected money, Averaging Rs 65 to 70 croore monthly, was routed through 30 shell companies, with pores laundered into gold, land, and overseas assets.