Sai Reddy to spill the beans on liquor scam?

Former YSR Congress party leader and ex-Rajya Sabha MP V Vijay Sai Reddy appeared before the Enforcement Directorate (ED) at its Hyderabad office in connection with the Andhra Pradesh liquor scam case.

A three-member ED team reportedly questioned him on alleged irregularities linked to the Rs 3,500 crore liquor scam.

According to sources, the agency focused on issues including illegal cash collections, money laundering, hawala transactions, and the alleged routing of funds through shell companies.

Investigators reportedly questioned why large sums were collected in cash instead of through digital payment channels and whether the proceeds were diverted to foreign destinations.

Speculations are rife that Sai Reddy, who might be privy to crucial information related to the case, especially given his alleged familiarity with the liquor policy decisions taken during the previous government’s tenure, would spell the beans before the ED authorities.

His recent proximity to NDA leaders following his resignation from YSRCP has fuelled the speculation that he might reveal the names of the beneficiaries of the liquor scam.

During the questioning, sources said Sai Reddy stated that meetings related to the formulation of the liquor policy were held three times in his presence, but maintained that he had no direct role in the policy’s design or implementation.

The ED officials are understood to have questioned him extensively on policy decisions as well as alleged clandestine financial transactions.

The ED registered an Enforcement Case Information Report (ECIR) based on an FIR filed by the Andhra Pradesh Special Investigation Team (SIT), which had earlier probed the case. 

The SIT reportedly found evidence suggesting large-scale financial irregularities, illegal cash transfers to shell companies, and corruption in the formulation of the liquor policy, allegedly coordinated from Hyderabad.

While the SIT focused on corruption and policy manipulation, the ED has taken up the matter from a money laundering perspective.

Acting on this assessment, the agency issued notices to Sai Reddy, directing him to appear for personal questioning.

Officials are now expected to record a detailed statement from him as part of the ongoing probe.