Hyderabad: The Enforcement Directorate‘s Hyderabad unit on Thursday carried out extensive searches at 12 locations in Hyderabad and Tirupati, at properties linked to close aides of former Andhra Pradesh chief minister YS Jagan Mohan Reddy in the alleged multi-crore liquor scam. Kesireddy Rajasekhara Reddy alias Raj Reddy, identified as the architect of the alleged cartel, reportedly pushed a manual procurement system that allegedly enabled selective approvals at inflated prices. The ED claims this mechanism allegedly enabled selective approval of certain brands at inflated prices while rejecting others to extract kickbacks.Raj Reddy was arrested in April 2025 and released on bail a year later. YSRC MP P Midhun Reddy was also arrested in July 2025 in connection with the case and was released on bail in Sept 2025. In all, 16 arrests have been made in connection with the multi-crore scam.ED claims Raj Reddy laundered Rs 3,200 crore through a web of companies. Funds were allegedly diverted into real estate ventures. Properties were acquired in family names to conceal ownership.ED documents also name Vijayasai Reddy as having allegedly influenced supply orders, with claims that distilleries were required to comply with certain conditions to secure business. Chevireddy Bhaskar Reddy is accused of handling the movement of funds, including transporting cash and altering records, while also reportedly exploring overseas investments.Among those searched, Dhananjaya Reddy, a former secretary to Jagan, is alleged to have instructed officials to override procurement systems and chaired review meetings related to liquor operations. Krishnamohan Reddy, who served as OSD to Jagan, is described as a communication link between senior operatives and APSBCL officials. Investigators described Prakash as a key operative acting under Raj Reddy’s direction. He allegedly coordinated with distillery owners through encrypted platforms and VoIP calls, collecting kickbacks in cash and other forms. He is also said to have fixed pricing structures to generate surplus funds and exercised control over UV Distilleries and Leela Distilleries, managing procurement and transactions.
