The Enforcement Directorate (ED) on Friday questioned of YSR Congress Party Member of Parliament Peddireddy Mithun Reddy in connection with its ongoing probe into the alleged Andhra Pradesh liquor scam that took place during the previous Y S Jagan Mohan Reddy regime.
The ED officials questioned Mithun Reddy for nearly seven hours, during which they examined him on multiple aspects related to the case and reportedly gathered key information.
However, Mithun Reddy refused to comment on the probe into the liquor scam due to existing court orders restraining public discussion on the matter.
With investigations already underway against several political leaders in connection with the alleged liquor scam, the ED’s probe is considered to have reached a crucial stage.
In July last year, the Special Investigation Team (SIT) of the Andhra Pradesh police probing the Rs 3,500 crore liquor scam arrested Mithun Reddy after questioning him in the case. Mithun Reddy was named as accused number 4 (A-4) in the case.
The SIT authorities suspected that the MP was involved in the flow of commissions received from liquor manufacturers into various alleged shell companies and from there to ultimate beneficiaries.
In the subsequent charge-sheet filed, the SIT alleged that the accused involved in the scam intimidated the liquor manufacturers that if they do not accede to pay commission, no orders will be issued to them. Under the threat of loss of business, several distilleries agreed to pay kickbacks to the extent of 12%. Soon, the percentage of kickbacks was increased to 20% of the base price.
“The collected amounts were eventually handed over to Raj Kesireddy (A-1), who would then pass the money to V Vijay Sai Reddy(A-5), Mithun Reddy (A-4), Balaji Govindappa (A-33). In turn, they transfer the money to YSRCP president and former chief minister Y S Jagan Mohan Reddy. “On an average, Rs 50-60 crore was collected every month,” the chargesheet said.
