The Special Investigation Team (SIT) police have alleged that Rajampet Member of Parliament P.V. Midhun Reddy, named as Accused No. 4 in the case, was the main conspirator in the multi-crore liquor scam.

According to the police, Mr. Midhun Reddy communicated multiple times with other accused persons, sent messages through social media platforms, and held meetings at various locations in Hyderabad, Telangana, and Tadepalli in Guntur district, Andhra Pradesh.

“The investigation reveals a large-scale conspiracy involving officials and political leaders who manipulated bureaucrats across several government departments, extending undue favours to liquor companies in return for kickbacks,” the SIT stated in its remand report on Mr. Midhun Reddy.

The alleged syndicate comprises several individuals, including Kasireddy Rajashekar Reddy, MP P.V. Midhun Reddy, former MP V. Vijaya Sai Reddy, Avinash Reddy, Sajjala Sridhar Reddy, Vasudeva Reddy, D. Satya Prasad, and others, police said.

As per the report, Mr. Midhun Reddy promised IAS rank to D. Satya Prasad, Assistant Commissioner in the Prohibition and Excise Department, and instructed him to work in favour of the liquor syndicate. Subsequently, Mr. Satya Prasad was appointed as Special Officer of the A.P. State Beverages Corporation Limited (APSBCL), where he managed liquor depots and monitored sales at government retail outlets. The syndicate allegedly promoted liquor brands and companies that agreed to pay commissions and kickbacks. Vasudeva Reddy, then Managing Director of APSBCL, facilitated the issuance of registrations, franchises, and sub-lease licences, while Mr. Satya Prasad oversaw marketing of the preferred liquor brands.

Funds were routed through shell companies, bank accounts of real estate firms, and members of the syndicate. The illicit money was allegedly used during the 2024 general elections for electoral malpractice in Andhra Pradesh. Investigators also found that money was moved via hawala channels based in Mumbai, Delhi, and Hyderabad. The SIT said that ₹5 crore was credited to the account of PLR Projects, a firm owned by Mr. Midhun Reddy and his family members.

So far, police have examined 270 witnesses and sent 74 hard disks and 1,016 documents to the Forensic Science Laboratory (FSL) for examination. As the forensic analysis is still ongoing, the SIT has sought custodial interrogation of Mr. Midhun Reddy to uncover his role and decode his communications with other accused individuals.

Mr. Reddy was arrested as he posed a flight risk and could potentially intimidate witnesses or commit further offences, the SIT said.