The Supreme Court on Friday granted bail to Andhra Pradesh liquor scam accused Muppidi Avinash Reddy, considered a crucial link in the alleged laundering of funds in the multi-crore case and a relative of the main accused Kassireddy Rajashekhar Reddy. The Supreme Court of India. (PTI)
A bench headed by Chief Justice of India Surya Kant passed the order after being informed that Reddy’s custodial interrogation was complete and that some co-accused in the case had already been granted bail.
While Reddy had moved the court against the rejection of his anticipatory bail by the Andhra Pradesh high court on January 29, the top court invoked its extraordinary powers under Article 142 of the Constitution to grant him regular bail.
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 had on February 24 refused to grant him interim protection upon learning that he had fled to Sri Lanka, stating that it would consider his plea only if he returned to the country and surrendered before the police.
On February 26, he surrendered in compliance with 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 already on bail while a few others remain in jail. He argued that Reddy was being unnecessarily dragged into the investigation due to his relation with the main accused.
The state refuted this claim, stating that Reddy’s custodial interrogation was crucial, as allegations against him include collecting and transferring kickbacks received by the main accused during the previous government led by the YSR Congress Party (YSRCP).
Senior advocate Siddharth Luthra, representing the Andhra Pradesh government, sought an additional 10 days for further interrogation. However, the bench declined the request, noting its earlier direction requiring the accused to surrender, which had already been complied with.
The alleged scam is estimated to be worth ₹3,200 crore and is said to involve manipulation of excise policy to benefit certain liquor companies in exchange for kickbacks.
The state initiated the investigation based on a complaint filed by Y Venkateswar Rao Srinivas, who alleged irregularities in the functioning of the AP State Beverages Corporation Limited (APSBCL) between October 2019 and March 2024. The complaint alleged that purchase orders for new and spurious liquor brands were issued and that some of these brands were produced by private distilleries linked to YSRCP leaders. It further alleged that kickbacks were paid in exchange for avoiding procurement from established liquor brands.
The excise department and APSBCL constituted a five-member committee to probe the allegations. The committee found suppression of established popular brands and preferential allocation to certain new brands in violation of existing norms.
It also flagged a major procedural lapse, noting that the procurement system, which had earlier been a transparent online process, was shifted to a manual system, creating scope for manipulation and compromising the integrity of the process. Based on this report, the state government recommended a specialised investigation by the CID.
A first information report was registered by the CID on September 23, 2024, under charges of cheating, criminal breach of trust and criminal conspiracy under Sections 420, 409 and 120(B) of the Indian Penal Code, 1960. The investigation in the case is currently ongoing.