Taking major action in the famous liquor scam case of Andhra Pradesh, the Hyderabad zonal office of the Enforcement Directorate (ED) has attached movable and immovable properties worth about Rs 441.63 crore. This action has been taken under the Prevention of Money Laundering Act.
According to ED, the attached properties belonged to K. Rajasekhara Reddy, his family members and companies associated with them, besides Boonetti Chanakya, D. Vasudeva Reddy and many other people and entities. These assets include bank balances, FDs, plots of land and other real estate properties.
ED had started this investigation on the basis of FIR registered by Andhra Pradesh CID. This complaint was given by the Principal Secretary of the State Government, in which it was alleged that due to manipulation in the liquor policy, there was a loss of about Rs 4000 crore to the government exchequer. Investigation revealed that before 2019, the liquor business in Andhra Pradesh was completely run through automated software system. This allowed complete digital tracking of purchase, supply and sale and kept records of every transaction, but after the formation of the new government after the 2019 assembly elections, the retail sale of liquor was brought under government control and it started being run through Andhra Pradesh State Beverage Corporation Limited (APSBCL).
According to ED, during this time the automated system was stopped and a manual system was implemented in its place, which gave the officials the opportunity to be completely arbitrary in issuing supply orders. The investigation revealed that by using this manual system, certain liquor brands were benefited, while many established brands were almost driven out of the market. Also, similar sounding brands i.e. new brands with similar names were launched in the market, whose base price was kept artificially high. This resulted in additional profits for the distillery companies and this money was allegedly used to pay bribes to the syndicate.
The agency’s investigation has revealed that illegal commission of 15 to 20 percent was charged on every case from many liquor companies. Without paying this bribe, companies could not get supply orders. Those companies which refused to pay, their payments were stopped or supply orders were rejected. The investigation also revealed that conversations about demanding and taking bribes were done through VOIP calls and encrypted apps like Signal, so that no one could get a clue.
ED says that K. Rajasekhar Reddy and his associates together committed a big scam in the liquor purchase and distribution system, due to which the state government suffered a loss of about Rs 3500 crore. It is alleged that this entire network made illegal recovery of about Rs 3500 crore from distillery companies. It was also revealed that the syndicate had established control over several distillery companies, including Adan Distillery Pvt. Ltd, Leela Distilleries Pvt. Companies like Ltd and UV Distilleries are included. These companies were given unusually large amounts of business by using political and administrative influence, thereby earning huge profits.
ED investigation has also revealed scam in liquor transport tender. It is reported that Sigma Supply Chain Solutions Pvt. Ltd. was given a big contract to transport liquor, the rates of which were much higher than before. Although the company was separate on paper, in reality it was also controlled by the same syndicate. The money received from this contract was used for money laundering through companies like TEKKR, Arroyo and Ezyload.
According to ED, many distillery companies used fake companies and suppliers. Fake bills were made showing supply of raw material and packaging on paper, whereas no goods were actually purchased. In this way, money was withdrawn from the banking channel and converted into cash. Investigation revealed that the money earned from this scam was invested in real estate and personal properties.
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Companies like were used. Through these companies, land was purchased and money was invested in residential projects. In many cases, attempts were made to make this black money look legitimate by making fake and backdated agreements. ED investigation revealed that this syndicate was earning illegal income of about Rs 100 crore every month by manipulating the liquor supply system. This money was collected in cash and kept at different locations in Hyderabad, from where it was later distributed further.
In the investigation so far, ED has found a money trail of about Rs 1048.45 crore. This money was taken through bribe, gold and other means. The investigating agency says that a large part of this money was used to buy properties and for personal gains, while a large amount has been hidden by the accused. ED has said that the investigation of the case is still going on and more major action may be taken in the future.
