Hyderabad

The Enforcement Directorate has summoned YSR Congress Party MP P V Midhun Reddy for questioning in connection with a money laundering investigation linked to an alleged Rs 3,500-crore liquor irregularity in Andhra Pradesh, officials said on Monday.

Midhun Reddy, a 48-year-old Member of Parliament representing Rajampet, has been directed to appear before the central agency’s zonal office in Hyderabad on January 23. His statement will be recorded under the provisions of the Prevention of Money Laundering Act, officials said.

The MP was earlier arrested by the Andhra Pradesh Police’s Special Investigation Team in July last year after being named as an accused in the case. He is currently out on bail.

In addition to Midhun Reddy, the ED has also issued summons to former MP Vijayasai Reddy, asking him to appear on January 22. The questioning is related to the implementation and functioning of the liquor policy enforced in the state between 2019 and 2024, during the tenure of the YSRCP government.

Vijayasai Reddy has been named as an accused in the first information report filed by the SIT. Investigators have alleged that illegal proceeds generated from the liquor trade were routed through him and eventually reached former Andhra Pradesh chief minister and YSRCP leader Y S Jagan Mohan Reddy.

Jagan Mohan Reddy has rejected the allegations, describing the case as politically motivated and accusing his rivals of orchestrating a conspiracy against him.

The Enforcement Directorate registered a case under the PMLA in September 2025, taking cognisance of the SIT’s findings and complaints. The police have so far submitted three charge sheets in the matter.

According to the SIT, the alleged kickbacks from the liquor trade amounted to approximately Rs 50 crore to Rs 60 crore every month. The charge sheets claim that Jagan Mohan Reddy was among the beneficiaries of these illicit payments, though he has not been formally named as an accused in the prosecution complaints.

Investigators have also alleged that the former chief minister presided over a key meeting in July 2019 concerning the new liquor policy. Under this policy, all retail liquor outlets were brought under the control of the Andhra Pradesh State Beverages Corporation Limited, a state-run entity.

The charge sheets further state that the illicit funds were systematically laundered using individuals with modest profiles, including office assistants and other employees. These individuals allegedly acted as conduits for transferring cash to the main accused.

Referring to official records, police have said that discussions held during the July 29, 2019 meeting, chaired by the chief minister, finalised critical aspects of the liquor policy, including the number of retail shops, leasing of premises, infrastructure requirements, manpower deployment and transportation costs.

The SIT has also claimed that Jagan Mohan Reddy played a decisive role in appointing D Vasudeva Reddy, an Indian Railway Traffic Service officer, as the managing director of APSBCL, even though other senior officials had recommended him for different postings. Vasudeva Reddy is among those accused in the case.

The charge sheets further allege that former bureaucrat Rajat Bhargava, who was serving as special chief secretary for excise at the time, repeatedly attempted to flag irregularities in the functioning of APSBCL to the Chief Minister’s Office. However, his concerns were allegedly ignored.

Investigators have claimed that portions of the alleged kickbacks were disguised as salaries paid to employees and associates of the accused. In several instances, low-level individuals were allegedly instructed to transfer money deposited in their accounts to other accused persons.

The SIT has also pointed to multiple violations and irregular changes made to the excise policy in 2019, which came to light during the course of the investigation.

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The YSR Congress Party has dismissed all allegations mentioned in the charge sheets, maintaining that the claims are unfounded and politically driven.