The chargesheet filed by the Special Investigation Team (SIT) in the alleged liquor scam during the previous YSR Congress Party regime in Andhra Pradesh has exposed a vast network of bribes and kickbacks disguised as legitimate business activities.
The 305-page chargesheet estimates the total amount of kickbacks at ₹3,570 crore, allegedly paid by liquor distilleries and suppliers under the guise of buying gold, garments, and conducting real estate transactions.
These funds, credited by the AP State Beverages Corporation Ltd (APBCL), were routed into the accounts of the accused through various channels.
According to the SIT, the accused transferred funds to bullion traders and gold merchants, obtained legitimate GST invoices for gold purchases, and then received cash kickbacks — after commission deductions — via Kesireddy Rajashekhar Reddy alias Raj Kesireddy (A-1) and Booneti Chanakya alias Prakash (A-8), with the help of their associates.
In some cases, distilleries and liquor suppliers directly colluded with gold merchants to supply gold to the accused.
Suspicious transactions worth ₹100–120 crore were identified from bank statements of distilleries that showed dealings with gold merchants.
Additionally, distilleries and suppliers transferred significant amounts to shell accounts or legitimate companies, masking them as promotional expenses such as purchases of linen garments, gold coins, and similar luxury items.
Funds were also routed through real estate companies or businesses owned by acquaintances and friends of the liquor syndicate members.
This layering strategy was intended to obscure the money trail and evade detection by investigative agencies.
The chargesheet also revealed that kickbacks were moved through organized hawala networks, primarily operating out of Mumbai, Delhi, Hyderabad, Dubai, and other international locations.
“The fund flow, bank statements, and the entire analysis of transfers to shell companies have been identified,” the SIT stated in its submission to the court.
