Dhananjaya Reddy and Krishna Mohan Reddy arrested in liquor case

In the multi-crore Andhra Pradesh liquor scam investigation, the Special Investigation Team (SIT) of the Andhra Pradesh CID has arrested K. Dhananjaya Reddy and P. Krishna Mohan Reddy. The arrests were announced by SIT officials on Friday evening. This is big step in the probe into the alleged Rs 3,200 crore scam that reportedly occurred during the YSRCP regime between 2019 and 2024.

SC denies to grant anticipatory bails

Dhananjaya Reddy, a retired IAS officer and former secretary to then-Chief Minister Y.S. Jagan Mohan Reddy, and Krishna Mohan Reddy, who served as Officer on Special Duty (OSD) in the Chief Minister’s Office, were named as accused numbers 31 and 32, respectively, in the scam.

The SIT had previously summoned both individuals for questioning, and their failure to appear prompted search operations in Hyderabad and Karnataka. The arrests follow the Supreme Court’s denial of anticipatory bail to the duo earlier on May 16, citing the ongoing investigation’s critical stage and the gravity of the allegations.

According to sources, the SIT has seized the mobile phones of both accused and extracted crucial information that could further unravel the financial irregularities in the liquor distribution and supply chains during the YSRCP’s tenure.

The scam allegedly involved favoritism in liquor brand promotions, kickbacks from distilleries, and financial misappropriations estimated at over Rs 3,500 crore. The Enforcement Directorate (ED) is also reportedly seeking details from the SIT to investigate potential money laundering angles.

The arrests have sparked political reactions, with YSRCP leaders alleging political vendetta by the ruling TDP-led coalition, while TDP supporters hailed the move as a step toward accountability. The SIT is expected to seek custodial interrogation to deepen the probe into the roles of Dhananjaya Reddy, Krishna Mohan Reddy, and other accused, including Bharathi Cements director Govindappa Balaji, who was arrested earlier.