ED Summons YSRCP MP Mithun Reddy in Rs. 3,500-Crore Andhra Liquor Scam

Amaravati, Jan 19: In a significant escalation of the probe into the alleged Andhra Pradesh liquor scam, the Enforcement Directorate (ED) has issued a formal notice to senior YSR Congress Party (YSRCP) leader and Rajampet MP, P.V. Mithun Reddy.

The central agency has directed the Member of Parliament to appear for questioning at its zonal office on January 23, 2026. This development follows closely on the heels of a similar summons issued to former MP V. Vijayasai Reddy, who has been asked to depose before the agency on January 22.

The case, which centers on alleged money laundering and irregularities in the state’s excise policy between 2019 and 2024, has moved into a high-intensity phase. Investigators claim that the previous government’s liquor policy was manipulated to favor a syndicate of suppliers and distributors. The ED is probing a money trail involving approximately Rs. 3,500 crore in illicit funds. Named as A4 in the initial Special Investigation Team (SIT) FIR, Mithun Reddy is alleged to be a “core conspirator.” He is accused of participating in high-level meetings to influence procurement processes and facilitating the movement of kickbacks. The MP had previously spent 72 days in judicial custody following his arrest by the Andhra Pradesh SIT in July 2025. He was released on bail in late September 2025 by the ACB Court under strict conditions, including a bar on public comments regarding the case.

The federal agency’s probe, registered under the Prevention of Money Laundering Act (PMLA), is focusing on how cash was allegedly laundered through shell companies and low-profile individuals.

“The investigation has uncovered evidence of kickbacks averaging Rs. 50 crore to Rs. 60 crore per month being routed through layered transactions to top political figures,” a source close to the investigation stated.

The YSRCP leadership has consistently dismissed the investigation as a “political conspiracy” and “vendetta” orchestrated by the ruling TDP-led government. Party chief Y.S. Jagan Mohan Reddy has maintained that the policy was designed to dismantle illegal “belt shops” and that the charges are based on fabricated evidence.

Conversely, the ruling alliance has welcomed the ED’s intervention, asserting that the “liquor mafia” caused massive losses to the state exchequer while enriching a few individuals at the helm of power.