YSR Congress Party MP P V Mithun Reddy appeared before officials of the Enforcement Directorate as part of an ongoing investigation into an alleged money laundering case linked to the Andhra Pradesh liquor scam. The case is connected to alleged financial irregularities worth around Rs 3,500 crore that reportedly occurred during the previous YSRCP administration in the state.
According to official sources, the Enforcement Directorate is examining the money trail related to the alleged liquor policy manipulation and illegal financial transactions. Mithun Reddy was summoned to provide clarification regarding his alleged role and financial dealings connected to the case. His appearance follows earlier action taken by the Special Investigation Team, which arrested him in July 2025 after naming him as one of the accused.
The SIT was constituted to probe alleged irregularities in the liquor procurement and distribution system implemented during the YSRCP regime. Investigators have alleged that the policy was structured in a manner that benefited select individuals and companies, leading to large scale revenue losses to the state exchequer. The Enforcement Directorate later stepped in to investigate possible violations under the Prevention of Money Laundering Act.
Mithun Reddy, who represents the Rajampet parliamentary constituency, was granted bail after his arrest and has denied all allegations against him. His legal team has consistently maintained that the charges are politically motivated and that no illegal financial transactions can be attributed to him. The YSR Congress Party has also stated that its leaders are being targeted as part of political vendetta.
Officials familiar with the investigation said the ED is focusing on tracing the flow of funds, identifying shell companies, and examining bank transactions linked to the liquor policy period. Several individuals and firms connected to the liquor trade have already been questioned as part of the probe.
The case has emerged as a major political issue in Andhra Pradesh, with opposition parties alleging large scale corruption under the previous government. The ruling establishment at the Centre has maintained that central agencies are acting independently and strictly in accordance with the law.
The Enforcement Directorate has not yet disclosed whether further summons or arrests are planned in the case. However, sources indicate that the investigation is at a crucial stage, with financial documents and digital evidence under detailed scrutiny.
As the probe continues, the case is expected to have significant political and legal implications in the state. The outcome of the investigation will play a key role in determining accountability related to the alleged liquor scam and associated money laundering activities.
