Key Highlights
- YSRCP MP P V Midhun Reddy seeks CBI investigation into alleged spurious liquor racket worth Rs 1.75 crore busted in Andhra Pradesh
- Reddy himself faces charges in separate Rs 3,200 crore liquor scam from previous YSRCP regime, currently out on conditional bail
- Telugu Desam Party suspended two leaders over alleged links to fake liquor trade spanning multiple districts
Spurious Liquor Racket: Opening Overview
A compelling political paradox has emerged in Andhra Pradesh as YSRCP MP P V Midhun Reddy demands a Central Bureau of Investigation probe into the state’s spurious liquor racket while simultaneously facing charges in a separate multi-crore liquor scam. The Rajampet MP’s letter to Union Home Minister Amit Shah on October 9, 2025, highlights the complex web of political accusations surrounding liquor-related irregularities in the state.
This spurious liquor racket, involving fake Indian Made Foreign Liquor production and distribution, has already resulted in major seizures worth Rs 1.75 crore in areas including Mulakalacheruvu and Ibrahimpatnam. The incident underscores the ongoing political battle between the ruling Telugu Desam Party coalition and opposition YSRCP, with each party accusing the other of facilitating illegal liquor operations under political patronage.
🚨 #LiquorScamByCBN
— YSR Congress Party (@YSRCParty) October 13, 2025
వైఎస్ఆర్సిపి అధిష్టానం పిలుపు మేరకు ఈరోజు నకిలీ మద్యం పై కడప నగరంలోని ఎక్సైజ్ కార్యాలయం ఎదుట చేపట్టిన నిరసన కార్యక్రమంలో పాల్గొన్న రాజంపేట పార్లమెంట్ పరిశీలకులు శ్రీ కె.సురేష్ బాబు గారు, మాజీ డిప్యూటీ సీఎం శ్రీ ఎస్.బి.అంజద్ భాషా గారు మరియు కడప నగర మేయర్… pic.twitter.com/7GwlopBIAn
Spurious Liquor Racket: Political Irony and Legal Complications
The most striking aspect of this spurious liquor racket controversy lies in its protagonist’s own legal predicament. P V Midhun Reddy, who is demanding federal investigation into the current spurious liquor operations, stands as Accused No 4 in an alleged Rs 3,200 crore liquor scam that allegedly occurred during the previous YSRCP government between 2019 and 2024.
The Special Investigation Team formed by the current N Chandrababu Naidu-led government accused Reddy of being a “core conspirator” who orchestrated policy changes to secure kickbacks from distilleries. After spending 71 days in judicial custody at Rajahmundry Central Jail, Reddy was granted conditional bail by the Anti-Corruption Bureau court with strict conditions including a Rs 2 lakh bond and appearing before the SIT twice weekly.
The spurious liquor racket that prompted Reddy’s CBI demand involves a sophisticated operation spanning multiple districts, with officials seizing 1,500 litres of bottled illicit liquor from different locations across Andhra Pradesh. This current racket differs significantly from the previous alleged scam, focusing on dangerous counterfeit production using toxic chemicals like methanol that poses severe public health risks. The irony intensifies as Reddy, while constrained by bail conditions preventing public comments about his own case, actively campaigns for federal intervention in investigating alleged irregularities by the current administration.
Scale and Operations of Current Spurious Liquor Network
The spurious liquor racket has revealed an extensive interstate criminal network that extends far beyond local law and order concerns. Excise officials have uncovered operations in Mulakalacheruvu of Annamayya district and Ibrahimpatnam in NTR district, with the racket masterminded by Addepalli Janardhan Rao and his brother Jaganmohan Rao. The sophisticated operation involved producing spurious liquor by mixing rectified spirit, malt, and caramel in Mulakalacheruvu before transporting it to Ibrahimpatnam for bottling and packaging. Investigators discovered sealing machines, fake labels, hologram stickers, and packaging cartons that created convincing imitations of popular brands including Old Admiral, Classic Blue, Kerala Malt, and Manjeera.
According to official data from the Andhra Pradesh Prohibition and Excise Department, the state detected 14,539 cases of illicitly distilled liquor in 2024, resulting in 6,157 arrests and seizure of 168,185 litres of illegal liquor. The current spurious liquor network represents a more dangerous evolution, using methanol and other toxic chemicals that have historically caused significant fatalities across India. National Crime Records Bureau data shows that between 2016-2020, Andhra Pradesh recorded 293 deaths due to spurious liquor consumption, with the highest spike of 183 deaths in 2017. The fake liquor trade has grown into what investigators describe as a “large-scale, organized interstate crime” requiring central agency intervention.
Spurious Liquor Racket: Political Fallout and Party Responses
The spurious liquor racket has triggered significant political tremors within the ruling Telugu Desam Party, forcing the suspension of two prominent leaders. The party suspended Dasaripalle Jayachandra Reddy, Thamballapalle in-charge, and Katta Surendra Naidu after their alleged links to the illicit trade surfaced during investigations. Jayachandra Reddy owned a bar near Vijayawada, though he had left for South Africa four days before investigators attempted questioning. The seizure of a detailed diary during raids revealed extensive records of distillery operations, supply schedules, payment entries, and coded references to belt shops and financiers across multiple districts.
Chief Minister N Chandrababu Naidu responded by establishing a Special Investigation Team comprising GVG Ashok Kumar, Rahul Dev Sharma, K Chakravarthi, Mallika Garg, and an excise department expert to conduct thorough investigations. Naidu emphasized that no one involved would escape accountability regardless of political affiliations, highlighting that 23 accused have been identified in the Mulakalacheruvu case with 16 arrests including key suspect Janardhan. The Chief Minister accused certain groups of adopting illicit liquor production methods from Africa and implementing them in Andhra Pradesh under political cover.
The YSRCP has consistently maintained that cases against their leaders represent “politically motivated” persecution and “vindictive conspiracy” by the Naidu government to silence opposition voices. The party simultaneously accuses the current TDP-led coalition of promoting illicit liquor for financial gain while dismissing spurious liquor allegations as “baseless propaganda” aimed at diverting attention from their own alleged Rs 3,200 crore scam.
Public Health Crisis and Federal Intervention Demands
The spurious liquor racket represents a severe public health emergency, with YSRCP MP Midhun Reddy warning that fake liquor production using methanol and toxic chemicals endangers human lives, particularly affecting economically weaker sections who are often unsuspecting consumers. His letter to Union Home Minister Amit Shah emphasizes that the magnitude of operations, involving associates of ruling party leaders, requires federal intervention as state agencies cannot ensure impartial investigation. The MP specifically requested involvement of the Central Bureau of Investigation along with the Narcotics Control Bureau, State Police, Excise, CBIC, and FSSAI in comprehensive investigations.
National data underscores the severity of spurious liquor consumption, with over 22,000 deaths reported across India since 2002. The National Crime Records Bureau recorded 617 deaths in 2022, with five states including Karnataka, Madhya Pradesh, and Punjab accounting for half of all spurious liquor deaths since 2012. Andhra Pradesh’s liquor consumption has surged significantly, with the state recording Rs 4,677 crore in liquor sales within 55 days of implementing its new liquor policy, including 61.63 lakh liquor cases sold across 3,300 retail outlets.
spurious liquor racket: Closing Assessment
The spurious liquor racket controversy in Andhra Pradesh exemplifies the complex intersection of public health crises, political vendetta, and law enforcement challenges in contemporary Indian politics. The demand for CBI investigation by an MP facing similar charges creates unprecedented legal and political dynamics that highlight systemic issues in liquor policy enforcement. While the immediate health risks from toxic counterfeit liquor require urgent intervention, the broader political implications suggest deeper governance challenges in balancing revenue generation, public safety, and political accountability. The resolution of this controversy will likely set important precedents for federal intervention in state-level liquor policy irregularities and determine the credibility of political parties in addressing public health emergencies while managing their own legal vulnerabilities.
