Andhra MP Mithun Reddy Leaves Jail On Bail In Multi-Crore Liquor Scam Case

YSRCP Member of Parliament PV Mithun Reddy walked out of Andhra Pradesh's Rajahmundry Central Jail after being granted conditional bail by the Anti-Corruption Bureau (ACB) Court in Vijayawada. His release came after 71 days of judicial remand in the multi-crore Andhra Pradesh liquor scam case.

Mithun Reddy, who has been lodged in Rajahmundry Central jail since his arrest on July 20, was released hours after the court order. The court granted bail subject to strict conditions, including two sureties of Rs 2 lakh each and to appear before the investigating authorities twice a week.

Mithun Reddy has been named Accused Number 4 (A4) in the case, which investigators allege is a conspiracy that began in 2019 to illegally control the state's liquor policy for massive illicit gain.

According to the details presented by investigators, the conspiracy was initiated in 2019 when public servant Satya Prasad reportedly approached Mithun Reddy, who promised him a conferred IAS promotion in exchange for his cooperation. Prasad was lured with the promise of a subsequent appointment as Special Officer to implement the conspiracy.

A key meeting was allegedly held on October 13, 2019, at the Hyderabad residence of another prominent YSRCP leader Vijayasai Reddy. The members allegedly plotted to create a syndicate to illegally earn between Rs 50-60 crores per month through commissions and kickbacks from various distilleries and suppliers.

The scheme involved bypassing the state's automated Order for Supply (OFS) system by having co-accused Vasudeva Reddy propose that Prasad would illegally handle supplies at depots and sales at Government Retail Outlets (GRO).

The syndicate allegedly took illegal control of the Andhra Pradesh State Beverages Corporation Limited (APSBCL) policies, dictating crucial aspects such as pricing, discounts and brand approvals. They are accused of misusing "similar-sounding brands" to inflate prices, resulting in direct revenue loss to the state, and intentionally favouring only those liquor companies willing to pay the demanded kickbacks.

Investigators allege Mithun Reddy as a core conspirator in the scheme, alleging his involvement from inception to execution. He is accused of orchestrating policy changes and coordinating with co-accused to secure kickbacks from distilleries and suppliers.

The MP is accused of directly influencing APSBCL officials, participating in multiple planning meetings, and issuing instructions that led to massive financial loss to the State exchequer.

Investigators claim that kickbacks were routed via various entities, including SPY Agro, Sanhoc Labs, and Dcart Logistics. Rs 5 crore was allegedly credited to PLR Projects, a company investigators state is closely linked to the MP's family, a connection he himself reportedly confirmed by disclosing a Rs 47.74 crore liability to the company.

The prosecution has further alleged that the ill-gotten money was used during the 2024 Lok Sabha polls in several constituencies to obtain undue political advantage.