ED attaches ₹441-cr assets in Andhra liquor case

THe Enforcement board of directors on fri committed transportable and unmovable properties worth ₹441.63 crore belonging to various accused in the ₹3,500 crore liquor case in Andhra Pradesh that allegedly took place during the regime of former chief minister YS Jagan Mohan Reddy.An official statement from the central agency said the attached properties belonged to prime accused Kesireddy Rajasekhar Reddy, his family members and related persons; his aide Booneti Chanakya and his family members; former AP State Beverages Corporation Ltd (APSBCL) managing director Donthireddy Vasudeva Reddy and others.“The attachment was made under the provisions of Prevention of Money Laundering Act (PMLA), 2002 in the liquor scam. The attached properties are in the form of bank balances, fixed deposits, land parcels and other immovable properties,” the ED release said.It said the agency had initiated investigation on the basis of an FIR registered by Crime Investigation Department of the state police under sections 120-B, 409 & 420 of Indian Penal Code for causing a loss to the government exchequer to the tune of ₹3,500 crore.The ED release said the investigation had revealed that the previous government had monopolized retail liquor outlets through government retail outlets operated by APSBCL. “As part of the criminal conspiracy, the automated system was deliberately disabled and replaced with a manual system, thereby vesting unfettered discretionary powers with APSBCL officials in the issuance of Orders for Supply (OFS),” it said.The YSRCP has always maintained that all such allegations were baseless.ED said the manual OFS regime was misused to discriminate against established liquor brands, which were deliberately marginalized or removed from the market. Simultaneously, preferential and irregular allocations were extended to select “favoured” brands on receipt of kickbacks.The investigation further revealed that distilleries were coerced into paying illegal kickbacks ranging from 15% to 20% of the basic price per case as a precondition for receiving OFS approvals. “Manufacturers who refused to comply were subjected to coercive measures, including withholding legitimate payments and rejection of supply orders,” it said.The ED investigation revealed that Kesireddy Rajasekhara Reddy, along with other members of the liquor syndicate, orchestrated a multi-crore scam in liquor procurement and distribution system in the state of Andhra Pradesh. “The proceeds of the crime generated from this scam were laundered and distributed among the members of the syndicate for personal enrichment,” he said.Another identified source of illicit revenue generation was the manipulation of liquor transportation contracts awarded through tender floated by APSBCL. The investigation revealed that a centralized transportation tender was awarded to a private firm at rates significantly higher than the earlier depot-wise transportation costs. The operational control of the transportation was done by the members of the syndicate, the ED said.ED investigation revealed that through manipulation of procurement and supply mechanisms, the syndicate generated illegal revenues estimated at approximately ₹100 crore per month. “Physical cash kickbacks were collected and stored at multiple locations in Hyderabad, from where they were subsequently moved, distributed, or disposed of by designated cash handlers of the syndicate,” it said.The ED investigation has so far revealed a money trail of ₹1048.45 crore in the form of kickbacks which several distilleries were compelled to pay in the form of cash, gold, etc. As well as in the form of control and operation of some distilleries by the liquor syndicate and also in the form of financial gains derived from transport of liquor.PMLA investigation has revealed that the proceeds of crime were used for purchase of immovable properties and personal enrichment of the members of liquor syndicate and their associates. Further investigation is under progress, the ED release said.