Balaji Govindappa arrested in Andhra Pradesh liquor scam

The Special Investigation Team (SIT) of the Andhra Pradesh Police arrested Balaji Govindappa, a full-time director of Bharati Cements, in Mysuru on May 12, 2025, in connection with the Andhra Pradesh liquor scam. The arrest marks a significant development in the ongoing probe into alleged financial irregularities during the YSR Congress Party (YSRCP) government’s tenure from 2019 to 2024.

According to SIT officials, Govindappa was apprehended based on precise intelligence and is being transported to Vijayawada for further questioning. He is accused of playing a pivotal role in diverting funds collected as kickbacks from distillery companies, which were allegedly funneled through shell companies and hawala networks into real estate and other investments.

The SIT’s investigation revealed that Govindappa, alongside other key accused like retired IAS officer K. Dhanunjaya Reddy and former CMO OSD Krishna Mohan Reddy, facilitated the collection of Rs 50-60 crore monthly in bribes from liquor suppliers.

The liquor scam involved manipulating liquor policies to favor select brands while sidelining others, causing significant losses to the state exchequer. Govindappa, listed as Accused No. 33 (A33) in the case, had previously ignored SIT summons issued on May 10, 2025, and was reportedly absconding until his arrest. His anticipatory bail pleas were rejected by both the Andhra Pradesh High Court and the Supreme Court, citing the need for custodial interrogation to uncover critical details.

Big trouble for YSRCP

The Enforcement Directorate (ED) has also launched a parallel investigation under the Prevention of Money Laundering Act (PMLA), seeking details from the SIT to trace the money trail, which reportedly involved fictitious firms and investments in Bengaluru real estate. Other prominent figures named in the scam include YSRCP MP P.V. Mithun Reddy, former MP V. Vijayasai Reddy, and prime accused Raj Kesireddy, who was arrested earlier.

Govindappa’s arrest is expected to provide fresh leads in the high-profile case, as the SIT and ED continue to unravel the complex network of financial transactions linked to the scam.