ED Raids Uncover Massive Fraud in Andhra Pradesh Liquor Scam
The Enforcement Directorate (ED) has struck gold in its probe into the Andhra Pradesh liquor scam, seizing key evidence of fake deals and dirty money trails. On Friday, the agency revealed that recent raids across India exposed bogus transactions that helped generate and move huge sums as proceeds of crime. This is part of their ongoing fight against money laundering linked to the scam.
During the searches, ED teams grabbed fake invoices and transport documents that listed non-existent vehicle details. They also found parallel invoices showing price hikes and chats that point fingers at some accused individuals hiding out in Dubai. These messages even detail how proceeds of crime (POC) were wired to them. In one spot, investigators seized unaccounted cash worth Rs 38 lakh. Plus, ledgers popped up showing crores of rupees sent abroad as part of the illicit funds.
The action kicked off on Thursday when ED’s Hyderabad Zonal Office raided 20 locations in cities like Hyderabad, Bengaluru, Chennai, Thanjavur, Surat, Raipur, Delhi NCR, and parts of Andhra Pradesh. They targeted people and firms accused of handling kickback payments through these shady, inflated deals—all under the Prevention of Money Laundering Act (PMLA).
This investigation started after Andhra Pradesh’s CID filed an FIR under the Indian Penal Code, highlighting a whopping Rs 4,000 crore loss to the government treasury. Back in February, the state government set up a Special Investigation Team (SIT) to dig deeper into the mess.
At the heart of the Andhra Pradesh liquor scam is the ‘new liquor policy’ that ran from October 2019 to March 2024. Accused officials allegedly played favorites by sidelining big-name brands like McDowell’s, Royal Stag, and Imperial Blue if they wouldn’t pay up. Instead, they pushed new or fake brands in return for massive kickbacks from distilleries and suppliers. The system switched from automated ordering to manual controls, opening doors for tampering with supply orders (OFS).
The SIT’s charge sheets paint a grim picture: officials swapped automated checks for manual approvals to tweak brand quotas and supplies. They favored a select group of distilleries and marketers, forced suppliers to cough up 15-20% of invoice values as bribes—or risk getting their brands buried or removed. Shell companies sprang up to funnel money and inflate orders, while key insiders bent rules to approve brands and silence complainers.
These charge sheets also claim kickbacks came from rigged procurements, phony vendor payments, and fake firms. The cash funded elections, personal luxuries, and even overseas transfers.
ED’s money trail probe shows how Andhra Pradesh State Beverages Corporation Limited (APSBCL) paid suppliers, only for the funds to bounce to ghost entities or unrelated parties under the guise of goods or services. Many deals were outright bogus, with others inflated way beyond real value. Suppliers even funneled money to jewelers for gold or cash, which landed as kickbacks with the accused.
In short, these raids shine a light on how the liquor policy scam in Andhra Pradesh turned legitimate business into a web of corruption, siphoning off public money through clever tricks. The ED says this evidence will help crack down harder on the money laundering angle.
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