The political landscape in Andhra Pradesh has been rocked by a sensational claim from the Andhra Pradesh Bharatiya Janata Party (BJP) chief, who has alleged that former Chief Minister and YSR Congress Party (YSRCP) president YS Jagan Mohan Reddy is likely to face arrest in connection with a massive Rs 3,500 crore liquor scam that allegedly took place during his tenure from 2019 to 2024.
The claim has intensified the ongoing political feud between the ruling Telugu Desam Party (TDP)-BJP-Jana Sena coalition and the opposition YSRCP, with accusations of vendetta politics flying from both sides.
The Andhra Pradesh liquor scam centers around allegations of a meticulously orchestrated scheme under the YSRCP government, where a new liquor policy introduced in 2019 is said to have facilitated large-scale corruption.
According to a Special Investigation Team (SIT) constituted by the current TDP-led government under Chief Minister N Chandrababu Naidu, the scam involved extorting kickbacks worth Rs 3,200 to Rs 3,500 crore from liquor manufacturers and distributors. The policy allegedly favored lesser-known liquor brands over established ones, with bribes collected to secure market share and supply orders.
The SITâs investigation has named several key figures, including Kessireddy Rajasekhar Reddy (alias Raj Kasireddy), the former IT advisor to Jagan, as the âmastermindâ of the scam. Raj was arrested on April 21, 2025, at Hyderabad airport. The chargesheet filed by the Andhra Pradesh police on July 20, 2025, alleges that kickbacks averaging Rs 50-60 crore per month were funneled through a network of YSRCP leaders, including Rajampet MP PV Midhun Reddy, former Rajya Sabha member V Vijayasai Reddy, and others, ultimately reaching Jagan Mohan Reddy.However, the 305-page chargesheet stops short of formally naming Jagan as an accused, though it identifies him as a recipient of the illicit funds.
In a recent statement, the AP BJP chief asserted that Jagan Mohan Reddyâs arrest in the liquor scam case is imminent, citing the mounting evidence gathered by the SIT. BJP chiefâs statement aligns with the narrative pushed by the TDP, which has accused the YSRCP of running a âliquor mafiaâ that devastated the stateâs economy and harmed poor families by promoting low-grade liquor brands.
The BJP leader reportedly pointed to the SITâs findings, which include a confession by Raj Kasireddy (though unsigned) claiming that Jagan endorsed the excise policy to generate revenue for both state welfare measures and YSRCP party funds.