In a major development that has shaken Andhra Pradesh’s political landscape, a massive liquor scam has been unearthed by a Special Investigation Team (SIT), exposing alleged corruption involving Rs 4,000 crore in bribes paid to leaders of the YSR Congress Party (YSRCP) during the previous government. The SIT investigation revealed that liquor manufacturers were compelled to pay bribes amounting to Rs 150-200 per case to operate in the state. Media reports indicate that these illicit payments were facilitated through a sitting Lok Sabha MP and a former Rajya Sabha MP from the YSRCP. The scam allegedly resulted in preferential treatment being given to local, less-popular liquor brands that complied with the bribe demands, while established national liquor brands were intentionally pushed out of the Andhra Pradesh market. The government-operated wine shops reportedly stocked only selected liquor brands, leaving consumers dissatisfied and creating frustration among liquor consumers in the state.
 

The controversy stems from the Jagan Mohan Reddy-led YSRCP government's liquor policy introduced after winning the 2019 elections. While Jagan initially promised to implement total prohibition, his government instead adopted a system where only state-owned liquor outlets were allowed to sell alcohol. This effectively excluded reputed national brands, creating a monopoly for lesser-known local brands such as Daaru House, British Empire Beer, and Power Star 99 Whiskey. The SIT’s investigation suggests that these local brands flourished largely due to favoritism and corrupt practices, while serious concerns regarding product quality remained unaddressed.
 

Ahead of the 2024 Andhra Pradesh elections, TDP Chief Chandrababu Naidu strongly criticized the liquor policy implemented under Jagan’s rule. Naidu vowed to introduce new reforms, emphasizing that the previous government’s liquor policy was riddled with financial irregularities and corruption. After TDP’s electoral victory and the subsequent formation of the new government, the administration swiftly launched an investigation into the liquor scam. By September 2024, Andhra Pradesh’s Principal Secretary (Revenue) filed a formal complaint with the CID, detailing alleged irregularities within the Andhra Pradesh State Beverages Corporation Limited (APSBCL) between 2019 and 2024. Acting on this complaint, the Director General of Police recommended the formation of a Special Investigation Team (SIT) to probe the matter further.
 

In February 2025, a seven-member SIT led by SV Rajasekhar Babu was appointed to lead the investigation. The SIT has since concluded its inquiry, and its final report is expected to provide a detailed account of the scale of financial damage and those accountable for the fraudulent activities. The investigation is expected to expose the key figures who orchestrated the multi-crore scam and benefited from the illicit bribes. The scandal’s impact extends beyond just monetary losses, as public outrage has intensified over the corruption that plagued the state's liquor trade. A white paper published earlier by the new government revealed that the flawed liquor policy under the YSRCP regime cost the state an estimated Rs 18,860 crore in losses. The report further claimed that these losses resulted from corrupt practices, market manipulation, and unethical favoritism. The exposure of this scam has prompted strong demands for legal action against the individuals involved, with the public urging authorities to ensure those responsible are held accountable.
 

The AP liquor scam has drawn comparisons to the controversial Delhi liquor scam, which previously rocked Indian politics. The Delhi scandal implicated key figures such as Arvind Kejriwal and several senior leaders from the Aam Aadmi Party (AAP), resulting in arrests and a severe blow to the party’s image. The ongoing investigation into the Andhra Pradesh liquor scam is now under heightened public and political scrutiny, with attention turning to the potential involvement of former Chief Minister YS Jagan Mohan Reddy and his inner circle. With the SIT report expected to disclose the full extent of corruption, all eyes remain on the unfolding developments as Andhra Pradesh awaits the next steps in this high-profile case.
 

As pressure builds for decisive legal action, the AP liquor scam has become a major political controversy that could reshape Andhra Pradesh’s political narrative. The revelations have not only exposed severe corruption within the previous administration but also raised concerns about the misuse of public funds and questionable governance practices. The public now awaits further updates on the SIT report’s findings and the judicial process that could determine the fate of those implicated in this high-stakes scandal. The Andhra Pradesh government’s decisive action to investigate the scam signals a strong stance against corruption, while citizens remain hopeful for a transparent and accountable system moving forward.