The officials of the Andhra Pradesh CID have started enquiry into the excise policy of former chief minister Y S Jagan Mohan Reddy. They found several irregularities in the excise policy. The officials have also found that former managing director of AP Beverages Corporation Vasudeva Reddy’s involvement in several irregularities.
Vasudeva Reddy was also the commissioner of distilleries and had powers not to report to the senior officials. He was on deputation to the state government. The CID officials have also conducted some searches in his house in Hyderabad recently. While it is not known whether they have collected any important documents during the searches in Hyderabad, sources say that the CID officials were able to get some information on the involvement of Vasudeva Reddy in the scam.
Vasudeva Reddy was not sending the files to the excise special secretary and commissioners. He used to threaten the officials using his influence with the then chief minister. Vasudeva Reddy was very close to Jagan Mohan Reddy, sources said.
It was alleged that Vasudeva Reddy used to purchase liquor for Andhra Pradesh giving more price than the neighboring Telangana state. He also limited the brands to a few and they were sold for higher prices. He stopped purchasing popular brands and went for little known or new brands. He also allowed some distilleries to be acquired by the YSR Congress leaders. A total of 65 percent of liquor was purchased from the distilleries of these leaders, it was alleged.
The state had 32 brands of liquor during 2014 and 2019. They were brought down to 5 and all the leading brands were not purchased in the state during Vasudeva Reddy’s tenure. He promoted only a few brands of liquor in the state during Jagan Mohan Reddy’s regime.
The CID officials have found that Vasudeva Reddy had diverted Rs 14,276 crore of the AP State Development corporation and the liquor income. His involvement in the diversion of funds is identified by the CID officials. The CID officials are establishing evidence to prove the charges against Vasudeva Reddy from 2019 to 2024.