In the Andhra Pradesh liquor scam, the Special Investigation Team (SIT) has filed a chargesheet of Rs 3,500 crore linking the former chief minister of Andhra Pradesh YS Jagan Mohan Reddy, network of YSR Congress Party leaders, shell companies and aides.
It has been alleged that the scam isn’t limited to enrich top leadership, but election campaign funding, personal wealth enhancement and foreign fund transfer through hawala.
Monthly Bribes
It is alleged that a monthly bribe of Rs 50-60 crore was taken from liquor companies, which was routed through P. V. Mithun Reddy (A-4), former YSRCP leader V. Vijayasai Reddy (A-5), and Govindappa Balaji (A-33). These three people were the main handlers of Jagan’s wife Y.S Bharathi Reddy ( who is also the director of Bharathi Cements). As per SIT, all the money was finally routed to Jagan.
Fake Startups And Shell Companies for Laundering
In order to hide the origin of the funds and the structured flow, many bogus startups of different industries such as pharma, logistics, vehicle, etc were set up. SIT alleged that a web of shell companies was created and money was transferred regularly through fake e-bills.
Election Funding And Vote-Buying
During elections in Prakasam, Chittoor and Nellore districts, close to Rs 200-300 crores was diverted towards YSRCP candidates. Jagan’s close aide Chevireddy Bhaskar Reddy had made the arrangements.
Hawala network
The chargesheet states that high end vehicles, foreign trips and real estate were acquired under benami names and a huge sum was transferred overseas via hawala for foreign business.
Political System Criminalised
The chargesheet concludes that the entire scheme undermined democratic processes, damaged public trust, and corrupted the political system by channeling illicit money to influence elections and establish power networks.