Rs 400 Crore Worth Of Gold Bought By Liquor Company: Nara Lokesh

Andhra Pradesh IT Minister Nara Lokesh on Thursday levelled serious allegations against former minister Peddireddy Ramachandra Reddy, alleging that gold worth ₹400 crore was purchased with money acquired through the state's multi-crore liquor scam by a firm linked to the latter.

Mr Lokesh alleged that funds from Adan Distilleries were funnelled into a construction company owned by Mr Peddireddi called PLR Constructions.

"Why would a liquor company buy Rs 400 crore worth of gold? Does it make any sense? Is that a raw material?" Mr Lokesh said at a press conference.

The allegations come amidst an ongoing investigation by a Special Investigation Team (SIT) into the alleged Andhra Pradesh liquor scam, which reportedly occurred during the previous YSRCP government's tenure (2019-2024).

The SIT has been conducting raids and has already seized significant amounts of cash, including ₹11 crore from a farmhouse in Hyderabad, believed to be linked to the scam.

The probe suggests that distilleries paid large kickbacks for preferential treatment and contracts, causing substantial losses to the state. The investigation is also looking into a complex network of transactions through shell companies, with the alleged kickbacks amounting to thousands of crores.

During the conference, Mr Lokesh "dared" Mr Reddy to deny the allegations. "Money came to Mr Peddireddi's company from Adan Distilleries. I am challenging Peddireddi Ramachandra Reddy. If he has the guts, let Peddireddi deny it," he said.

The accusations are the latest in a series of exchanges between the two political leaders. The current government has been vocal about its intentions to hold the previous administration accountable for alleged corruption, and the SIT's investigation into the liquor scam is a key part of this effort.

There was no immediate reaction from Mr Reddy on the allegations but earlier, he had dismissed Mr Lokesh's claims, calling them "foolish". The political fallout from these new claims is expected to escalate as the investigation continues.