Key accused arrested in Andhra Pradesh liquor scam

Vijayawada, May 13 The Special Investigation Team (SIT) of Andhra Pradesh has arrested Bharati Cements Director Balaji Govindappa in the liquor scam case.

Govindappa, one of the key accused in the case, was arrested by the SIT in Mysuru in Karnataka, and he was being brought to Vijayawada, police sources said.

The SIT had last week served notices to Govindappa, K. Dhanunjaya Reddy, a retired IAS officer and ex-secretary of former chief minister Y. S. Jagan Mohan Reddy, and Krishna Mohan Reddy, former Officer on Special Duty (OSD).

They were directed to appear before the SIT office at Vijayawada Commissionerate on May 12 for questioning. However, they skipped the appearance.

Acting on credible information, the SIT officials arrested Govindappa in Mysuru.

The Andhra Pradesh High Court on May 7 had rejected their anticipatory bail pleas, citing the preliminary stage of the investigation into the alleged scam of Rs 3,200 crore.

All three accused were close aides of Jagan Mohan Reddy, and there are allegations that they collected bribes from liquor supplying companies and distilleries and diverted the money to bogus companies.

According to SIT, the trio had held meetings with the owners of liquor supplying companies and distilleries in Hyderabad and Amaravati.

Raj Kasireddy, the prime accused in the case, was allegedly handing over the bribe to the trio after collecting from the owners of the liquor companies.

The SIT on April 21 arrested Kasireddy in the multi-crore liquor scam that occurred during the YSR Congress Party regime.

It served notices to other accused based on the information gathered during the questioning of Kasireddy.

Kasireddy is suspected to have played a key role in the alleged illegal collection of nearly Rs 3,000 crore over a five-year period. He was the IT advisor to the then chief minister Y. S. Jagan Mohan Reddy.

The TDP-led NDA government constituted the SIT in November last year to investigate the allegations of irregularities and corruption in Andhra Pradesh State Beverages Corporation Limited (APSBCL) under the YSRCP tenure.

The TDP leaders alleged that some YSRCP leaders had links with the liquor manufacturers, floated many local brands, conducted cash payments and made illegal money.

The SIT reportedly identified the involvement of some political leaders, private persons and others in the scam.

The investigating officers reportedly traced the money trail of kickbacks involving a sitting Lok Sabha member and a former Rajya Sabha member from YSRCP.

Former MP V. Vijayasai Reddy, who resigned from YSRCP and also quit as MP in January, appeared before the SIT as a witness on April 18.

He termed Kasireddy as the mastermind. He also told the investigating officers that he did not know who received the money collected by Kasireddy.

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