Telugu Desam Party MP alleges massive liquor scam in Andhra Pradesh between 2019 and 2024

Telugu Desam Party MP alleges massive liquor scam in Andhra Pradesh between 2019 and 2024

Telugu Desam Party (TDP) floor leader in Lok Sabha Lavu Sri Krishna Devarayalu alleged that massive liquor scam in Andhra Pradesh between 2019-24, during the period of the YSRCP government, while delivering a speech on the Finance Bill 2025-26 in New Delhi on Monday. He claimed that the corruption in the State’s liquor industry surpassed the that in the Delhi Excise Policy scandal, accusing the previous ruling YSR Congress Party of monopolising liquor production, engaging in large-scale financial misconduct and diverting public funds abroad.

In his address, Mr. Sri Krishna Devarayalu emphasised India’s economic trajectory, stating that the country is on course to become the third-largest economy by 2030. He noted a 16.2% rise in direct tax collections, which reached ₹25.9 lakh crore as of March 2025. However, he expressed concerns over the underutilisation of capital expenditure over the past two years, urging the government to redirect ₹1 lakh crore in unspent funds toward Research & Development to drive long-term economic growth.

He elaborated on the alleged Andhra Pradesh liquor scam, outlining corruption at three levels: pre-production, production, and distribution. He claimed that the ruling party, at that time, initially misled the public with promises of prohibition, only to later establish a monopoly over liquor manufacturing. Major distilleries, such as SPY Agro Industries in Nandyal, were allegedly taken over illegally, while benami companies were created to produce low-quality liquor for massive financial gains.

Further, he alleged that 20 Indian Made Foreign Liquor (IMFL) distilleries were illegally taken over, with 60% of the production capacity allocated to newly formed and politically connected entities in exchange for commissions. Between 2019 and 2024, 38 new liquor brands emerged, all controlled by individuals linked to the then ruling YSR Congress Party. Established brands from previous years were systematically removed from the market, forcing consumers to purchase unknown and sub-standard brands. He also alleged that 26 new liquor companies, including Adan, Graysons, Leela and PV Spirits, reportedly generated ₹20,356 crore in revenue through non-transparent business practices.

Mr. Sri Krishna Devarayalu also accused the Andhra Pradesh State Beverages Corporation Limited (APSBCL) of manipulating liquor procurement to benefit brands associated with the YSRCP members. Unlike other States, Andhra Pradesh introduced liquor brands that were exclusively sold within its borders, creating a closed ecosystem that eliminated competition. He pointed out that out of ₹99,413 crore in revenue from liquor sales over the past five years, only ₹615 crore was transacted digitally, raising concerns about large-scale financial irregularities. Reports further suggest that ₹2,000 crore was allegedly funneled to Dubai by N. Sunil Reddy under the guise of infrastructure transactions.

According to Mr. Sri Krishna Devarayalu, the scam resulted in a loss of ₹18,860.52 crore to the Andhra Pradesh exchequer between 2019 and 2024, depriving Scheduled Castes, Scheduled Tribes, Backward Classes, and minority communities of their rightful share of government revenues.

He urged the Union government to provide Revenue Deficit Assistance to Andhra Pradesh to compensate for the alleged economic mismanagement. He also called for liquor to be brought under the GST framework to ensure transparency and accountability in tax collection. Additionally, he demanded that the Enforcement Directorate and other Central investigative agencies conduct a thorough probe into the scam and take legal action against those responsible.