Fresh twists have emerged in the ongoing Andhra Pradesh liquor scam investigation, with accused Muppidi Avinash Reddy making a series of claims during interrogation by the Special Investigation Team (SIT).
According to sources, Avinash alleged that funds routed through a Mumbai-based hawala operator, Anil Chokhra, belonged to “top leaders and officials” of the previous YSR Congress Party (YSRCP) government. However, he reportedly maintained that he was unaware of the ultimate beneficiary of the transactions.
Avinash, who was recently arrested in connection with the case, was questioned for nearly seven hours, during which investigators posed over 80 questions. He is said to have described Chokhra’s network as highly sophisticated, with links to influential circles that enabled large-scale hawala and money laundering operations.
During the interrogation, Avinash shifted responsibility for alleged irregularities onto Raj Kesireddy, claiming that he played a central role in liquor policy-related dealings. He further alleged that Kesireddy facilitated his exit from the country when the probe intensified following a change in government.
Detailing the origins of their business, Avinash reportedly told investigators that he and his brother initially operated liquor outlets in Hyderabad. After the YSRCP came to power in 2019, they came into contact with Kesireddy, who was allegedly handling key aspects of the state’s liquor policy.
With his support, they established Adan Distilleries, where Avinash initially invested Rs 1 lakh. Later, industrialist Penaka Sarath Chandra Reddy reportedly infused nearly Rs 60 crore into the venture.
The company subsequently secured large supply orders through the Andhra Pradesh State Beverages Corporation Limited (APSBCL) by sub-leasing distilleries such as SPY Distilleries. However, a dispute over shareholding between Kesireddy and Sarath Reddy allegedly led to Avinash distancing himself from the company’s operations.
“I stepped aside at the very beginning. If any irregularities occurred, Raj Kesireddy alone is responsible,” Avinash is said to have told investigators.
He further alleged that shell companies were created under the pretext of providing services like packaging and logistics, with fake invoices generated to divert funds. Records were also allegedly deleted to erase audit trails.
While denying any involvement in money laundering, Avinash reportedly told investigators that he suspects the operation was orchestrated by senior functionaries of the previous regime through Kesireddy.
Officials indicated that further disclosures are likely as the investigation progresses.
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