The Enforcement Directorate (ED) has turned up the heat on the YSRCP leadership, summoning Rajampet MP PV Midhun Reddy for questioning in a massive ₹3,500-crore money-laundering case. The 48-year-old parliamentarian is expected to appear at the ED’s zonal office on January 23 to record his statement under the Prevention of Money Laundering Act (PMLA).
Midhun Reddy isn't the only one in the crosshairs; the agency has also called in former MP Vijayasai Reddy for questioning on January 22. Both of these leaders are facing fierce scrutiny for the liquor policy that has been executed from 2019 to 2024. However, whereas Midhun Reddy was already arrested by the state SIT in July 2025 and has been released on bail presently, the charge against Vijayasai Reddy is that of acting as a middleman for the illegal proceeds of the liquor business and funnelling the same into former Chief Minister YS Jagan Mohan Reddy.
The probe, which the ED took over in September 2025, originated from a number of charge sheets, which were filed by the SIT. The charge sheets point out a systemic kickback mechanism. According to these documents, Jagan Mohan Reddy allegedly received between ₹50 crore and ₹60 crore every month in payoffs. While the former CM hasn't been officially named as an accused in the prosecution complaints yet, the SIT claims he personally chaired the 2019 meeting where the new state-run liquor policy was finalised.
The charge sheets also draw attention to some questionable administrative actions, such as how Jagan allegedly pressed for the appointment of D Vasudeva Reddy to be the head of the state beverage corporation (APSBCL) despite not being recommended for the position by the senior authorities. Moreover, erstwhile special chief secretary Rajat Bhargava allegedly tried to raise the red flags regarding irregularities at APSBCL, but his warnings to the CMO went unanswered.
To hide the money trail, the syndicate allegedly used "low-profile" employees — including office boys — to deposit cash and route it back to the main accused under the guise of salaries. For its part, the YSRCP has dismissed the entire probe as a "political conspiracy" and labelled the allegations as completely baseless.
Also read: After party worker’s murder, Jagan targets Naidu
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