A major controversy is emerging in Andhra Pradesh after the Enforcement Directorate revealed details of an alleged large-scale liquor scam that reportedly took place between 2019 and 2024. The findings mentioned in the agency’s recent press release have sparked intense political debate, with allegations that the state’s liquor procurement and supply system was manipulated, leading to huge financial losses and possible illegal gains worth thousands of crores.
According to the Enforcement Directorate, assets worth ₹441.63 crore have already been attached as part of the ongoing investigation into the case. These assets reportedly include bank balances, fixed deposits, land parcels and other immovable properties linked to individuals and entities allegedly connected to the case. The investigation suggests that the alleged irregularities occurred through manipulation of the liquor procurement and distribution system in the state.
The agency’s findings indicate that the liquor supply system in Andhra Pradesh underwent a significant change after the 2019 elections. Prior to that period, the procurement and supply chain for liquor was reportedly operated through an automated and transparent software-based system. This digital system tracked procurement, supply and retail sales, reducing the possibility of manual intervention.
However, the investigation states that the automated system was later replaced with a manual Order for Supply (OFS) system. According to the ED, this shift allowed certain officials and intermediaries greater discretionary powers in selecting suppliers and issuing supply orders. Investigators believe this change opened the door for large-scale irregularities in the allocation of liquor supply contracts.
The report also claims that certain brands were allegedly given preferential treatment in the market after the introduction of the manual system. Some previously popular liquor brands reportedly disappeared from the market, while new or lesser-known brands with similar-sounding names were introduced. Investigators believe that these brands were promoted by a network of favored manufacturers and distributors, resulting in substantial profits for those involved.
Another key allegation mentioned in the investigation relates to kickbacks in the supply process. The ED claims that distilleries seeking OFS orders were allegedly required to pay kickbacks ranging between 15 percent and 20 percent per liquor case. According to the investigation, companies that refused to pay these commissions reportedly faced delays in payments or denial of supply orders.
Based on the evidence gathered so far, investigators estimate that the alleged liquor scam may have caused a financial impact of nearly ₹3,500 crore. Officials believe that large portions of this money were routed through various channels, including cash transactions, investments and business entities.
The investigation has also traced a suspected kickback money trail of about ₹1,048.45 crore. Authorities say the money was reportedly converted into different forms, including cash holdings, gold and investments in companies. The ED also claims that several shell companies were used to move and conceal the funds.
Among the entities mentioned in the investigation are companies such as Ovolk, Kripati, Nysna Multiventures, Arroyo and Ezylod. Officials believe these firms were used to route funds through multiple transactions as part of an alleged money laundering network.
Apart from the financial aspects, the controversy has also raised concerns about the possible impact on public health. Critics of the previous administration claim that the promotion of certain liquor brands and alleged irregularities in the system could have had serious consequences for consumers. Some reports have also linked the issue to rising health problems related to alcohol consumption in the state.
The allegations have triggered strong political reactions, with opposition leaders demanding strict action against those responsible for the alleged scam. They argue that if the findings of the investigation are proven true, it would represent one of the largest corruption scandals related to the liquor trade in the state.
Meanwhile, supporters of the former government maintain that the allegations are politically motivated and that the investigation should be allowed to proceed through proper legal channels before drawing conclusions.
As the Enforcement Directorate continues its probe, the alleged Andhra Pradesh liquor scam is likely to remain a major political and legal issue in the coming months, with further revelations expected as the investigation progresses.