Visakhapatnam: The Andhra Pradesh Special Investigation Team (SIT) has filed a supplementary chargesheet in its ongoing probe into alleged irregularities in the state’s liquor policy during the tenure of the previous YSRCP government. The document, submitted to the court, alleges a large-scale criminal conspiracy between 2019 and 2024 involving political executives, senior bureaucrats and private individuals, resulting in unlawful gains of approximately Rs 3,500 crore.

The chargesheet, a copy of which is with The Wire, claims the "common object" of the accused was to obtain "unlawful pecuniary advantage" by manipulating the state-run Andhra Pradesh State Beverages Corporation Limited (APSBCL). The core of the alleged conspiracy, according to the SIT, was the subversion of a transparent, automated liquor procurement system in favour of a manual, opaque one. This, the SIT alleges, allowed a select group of individuals to control which brands were purchased, at what price, and to extract kickbacks from manufacturers and distilleries.

The SIT has named several individuals from the former government's inner circle. According to the chargesheet, the conspiracy involved senior officials in the then chief minister's office, including an ex-IAS officer who served as secretary to the CM, Kalva Dhananjaya Reddy, and an OSD, Pellakuru Krishna Mohan Reddy.

The chargesheet heavily cites the statement of Rajat Bhargava, a senior IAS officer who was the special chief secretary for revenue. The SIT claims that despite Bhargava identifying and flagging irregularities within APSBCL, officials in the CMO, specifically Dhananjaya Reddy, instructed him to refrain from taking action.

A significant portion of the chargesheet focuses on the alleged role of the consultancy firm KPMG. The SIT claims KPMG was hired to “lend credibility to a flawed excise policy” and that its recommendations were selectively used to justify the shift to a manual indenting process which allegedly favoured specific vendors.

The investigation details an extensive money trail, alleging that kickbacks were laundered through a web of shell companies, real estate transactions, and benami holdings.

The chargesheet lists numerous land parcels, primarily around Hyderabad, allegedly purchased by key accused Kessireddy Rajashekhar Reddy with illicit funds. It also details the alleged financial network of operatives who handled cash logistics and front companies.

To support its claims of a high-level conspiracy, the SIT states it has relied on call data records (CDRs), flight manifests and witness testimonies to establish meetings between key political figures, including then Rajya Sabha MP Vijayasai Reddy, and other accused persons where the alleged scheme was planned.

The document asserts that these meetings, dating back to 2019, laid the groundwork for the manipulation of the state's excise policy. Further investigation into the matter is ongoing.

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