The Supreme Court on Friday granted bail to Muppidi Avinash Reddy, an accused in the Andhra Pradesh liquor case. SC grants bail to accused in Andhra Pradesh liquor case
A bench headed by Chief Justice of India (CJI) Surya Kant passed the order after it was informed that Reddy’s custodial interrogation is over and some of the co-accused in the case have already been granted bail.
Reddy had moved the court against the rejection of his anticipatory bail by the Andhra Pradesh high court on January 29.
The bench, also comprising justices Joymalya Bagchi and Vipul M Pancholi said, “Without expressing any opinion, we allow the petition by invoking our power under Article 142 to grant him regular bail subject to his furnishing bail bonds to the satisfaction of the trial court.”
The court , on February 24 refused to grant him interim protection upon learning that he had fled to Sri Lanka to evade arrest. The bench said at the time that it would consider his plea only if he returned to the country and surrendered to the police.
On February 26, Reddy surrendered as per the court’s order and was subjected to custodial interrogation. Senior advocate Siddharth Dave appearing for Reddy pointed out that 11 co-accused in the case are out on bail while few others are still in jail. Dave argued that Reddy was unnecessarily being dragged into the investigation on account of being a relative of the main accused, K Rajashekhar Reddy.
The state refuted this claim and said that Reddy’s custodial interrogation is crucial to the case as he is alleged to have collected and transferred kickbacks received by the main accused. Senior advocate Siddharth Luthra representing the Andhra government sought an additional 10 days to further interrogate Reddy.
The state is investigating into the aspect of criminal misconduct and wrongful loss caused to the public exchequer as it has alleged that the petitioner (Reddy) had actively participated in the organisation of the illicit liquor trade and played a pivotal role in facilitating the issuance of order for supply to preferred brands and distilleries, collecting kickbacks, and transferring illicit amounts through shell companies. The state believes the kickbacks amount to ₹3200 crore.
The case dates back to between October 2019 and March 2024, and the allegation is that the beneficiary companies were those with links to leaders of the YSRCP, which will then in power in the state. While the SIT has accused former AP chief minister YS Jagan Mohan Reddy of being a beneficiary of the scam, he is not named as an accused. The YSR Congress Party, whose leaders are facing probe, have denied the allegations. They have accused the present government led by Telugu Desam Party (TDP) of launching a politically motivated witchhunt against its leaders.
An FIR was registered by the state CID on September 23, 2024 under offences of cheating, criminal breach of trust and criminal conspiracy under Sections 420, 409, and 120(B) of the Indian Penal Code, 1960 in which investigation is currently underway. The Enforcement Directorate registered a case under the Prevention of Money Laundering Act (PMLA) in May 2025. Its investigation has so far led to attachments of assets worth ₹441 crore belonging to the main accused Kasireddy among others.