Andhra liquor scam: Accused Avinash Reddy surrenders after SC order

Accused in the Andhra Pradesh liquor scam, Muppidi Avinash Reddy surrendered before the SIT in Vijayawada after the Supreme Court rejected his anticipatory bail plea and directed him to cooperate with the investigation

Vijayawada: Muppidi Avinash Reddy, an accused in the Andhra Pradesh liquor scam case, surrendered before the Special Investigation Team (SIT) here on Thursday.

This came two days after the Supreme Court refused to grant him anticipatory bail and directed him to surrender before the police by February 26.

---

Avinash Reddy is accused number seven in the Rs 3,500 crore liquor scam, which allegedly occurred during the YSRCP rule.

The division bench headed by Chief Justice of India Surya Kant, said that Avinash Reddy must surrender and cooperate with the investigation.

The apex court also rejected his request for protection from arrest but granted him liberty to apply for regular bail before the trail court.

Avinash Reddy approached the Supreme Court after the Andhra Pradesh High Court dismissed his anticipatory bail petition.

The prosecution had argued that Avinash Reddy was evading arrest and was suspected to have fled the country. It also told the court that main accused Raj Kesi Reddy helped Avinash Reddy escape from the country.

Avinash Reddy allegedly laundered money collected through commissions from liquor suppliers to safe heavens in other countries.

Following the Supreme Court order, Avinash Reddy surrendered at the SIT office in Vijayawada.

The case relates to the multi-crore scandal allegedly committed by manipulating excise policy and receiving kickbacks from distilleries.

After the TDP-led NDA came to power in 2024, a case was registered at the CID Police Station in Mangalagiri under Sections 409, 420, 120 (B), r/w 34 and 37 of IPC and Section 7, 7A, 8, 12, 13 (1), (b), 13 (2) of the Prevention of Corruption Act, 1988.

The Criminal Investigation Department (CID) initially conducted an investigation following a complaint by an official of the Excise Department. Later, the government constituted the SIT, headed by NTR District Commissioner of Police S.V. Rajashekhar Babu, to probe the case.

The SIT found large-scale irregularities and fund misappropriation in the liquor policy implemented during 2019-24. Investigators reportedly uncovered a kickback network involving nearly Rs 3,500 crore siphoned off over five years.

There are allegations that the YSR Congress Party leaders encouraged the new liquor policy, floated new brands, received kickbacks from the distillery companies, causing huge losses to the government.

The SIT has named several accused in the case, including MPs, retired IAS officers, distillery companies and shell company owners.