Andhra Pradesh Liquor Scam: Govt Attaches ₹33 Crore Properties Linked to Adan & Leela Distilleries
Andhra Pradesh govt orders attachment of properties worth ₹33 crore in liquor scam probe involving Adan and Leela Distilleries; investigation ongoing.
image for illustrative purpose
In a major development in the Andhra Pradesh liquor scam case, the state government has ordered the attachment of properties and bank accounts linked to Adan Distilleries Pvt Ltd and Leela Distillery Pvt Ltd. The move follows findings by the Crime Investigation Department (CID), which is probing alleged irregularities in the implementation of the Andhra Pradesh Excise Policy (2019–2024).
₹33 Crore in Assets Frozen Under Criminal Law Ordinance
The action was taken under the provisions of the Criminal Law Amendment Ordinance, 1944, and involves assets valued at approximately ₹33 crore. The case has been registered under various sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act, citing grave offences such as cheating, criminal breach of trust, corruption, and criminal conspiracy.
Allegations of Kickbacks and Price Manipulation in Liquor Licences
According to the official government order issued on Friday, the CID probe has unearthed a nexus between government officials and private distillery companies, who allegedly manipulated Order for Supply (OFS) licences to inflate liquor prices and generate unlawful profits. Investigators claim that commissions and kickbacks were received in return for facilitating these fraudulent activities.
Key Accused and Financial Trail Exposed
- Kasichanyula Srinivas, director of Adan Distilleries, has testified that he was pressured by Rajshekhar Kasireddy, the prime accused, to start the company in exchange for favourable OFS support from Andhra Pradesh State Beverages Corporation Ltd (APSBCL).
Despite being newly established, Adan Distilleries reported a massive ₹800 crore turnover between 2019 and 2024.
Suspect Fund Transfers and Shell Companies
The investigation has tracked a complex money trail:
- Adan Distilleries allegedly transferred ₹5 crore each to Arroyo Services Pvt Ltd and Ezyload Network Pvt Ltd.
- These firms then funneled the funds to Phoenix Spaces Pvt Ltd, under the direction of T. Eswar Kiran Kumar Reddy, who reportedly acted on instructions from Raj Kasireddy.
- Another major transfer of ₹20 crore was made to Phoenix Infrastructure Pvt Ltd for commercial real estate in Phoenix Trivium, Hafeezpet, Hyderabad.
Leela Distillery Under Investigation
Leela Distillery Pvt Ltd is also under scrutiny. Authorities have discovered ₹2.85 crore in a private Pondicherry bank account, which is suspected to be linked to unlawful financial gains through forced acquisition of the distillery. The accused in this transaction include Raj Kasireddy, Booneti Chanakya, and Tukekula Kiran Kumar Reddy.
