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According to the FIR, the liquor policy was allegedly manipulated to sideline well-established brands like McDowell’s, Royal Stag, and Imperial Blue which refused to pay kickbacks
The contours of the case point to a deliberate sabotage of the state’s liquor procurement system, siphoning crores from the public exchequer while propping up spurious brands.
After Delhi and Chhattisgarh, Andhra Pradesh is now under the scanner of the Enforcement Directorate (ED) with a fresh liquor scam unearthed in the state. On Friday, the directorate conducted searches at 20 locations across Hyderabad, Bengaluru, Chennai, Thanjavur, Surat, Raipur, Delhi-NCR, and Andhra Pradesh connected with the scam.
According to a senior ED official in the agency, the searches targeted some entities and individuals accused of facilitating inflated transactions and kickbacks in what is now being called the Andhra Pradesh liquor scam. The contours of the case point to a deliberate sabotage of the state’s liquor procurement system, siphoning crores from the public exchequer while propping up spurious brands.
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ED’s investigation traces back to the FIR lodged by the Andhra Pradesh CID under various sections of the IPC in February 2025, alleging a loss of nearly Rs 4,000 crore. In a statement, the ED said a Special Investigation Team (SIT) was constituted to probe what was described as a ‘new liquor policy’ rolled out between October 2019 and March 2024.
According to the FIR, the liquor policy was allegedly manipulated to sideline well-established brands like McDowell’s, Royal Stag, and Imperial Blue—companies that refused to pay kickbacks. Instead, little-known or dubious labels were promoted as they were willing to grease the system.
The ED, quoting the SIT charge sheets, further added that a systematic dismantling of the automated procurement mechanism and its replacement with manual approvals took place. This created room for manipulation in the crucial Order for Supply (OFS) process.
“Suppliers were allegedly coerced into paying 15–20 per cent of their invoice values as kickbacks. Distilleries and marketing firms that resisted were suppressed, while shell companies were floated to channel illicit funds. Officials allegedly handpicked to control the OFS pipeline facilitated approvals, manipulated eligibility norms, and muted dissenting voices,” the agency said.
Meanwhile, the ED’s probe further reveals how legitimate payments to established distilleries were withheld to arm-twist them into submission, while payments routed through the Andhra Pradesh State Beverages Corporation Limited (APSBCL) were diverted under the guise of procuring goods and services. A money trail examination showed that these funds were funnelled to non-existent entities, shell companies, or unrelated individuals. It was also stated that a portion of the kickbacks was repurposed for election funding, overseas transfers, and personal enrichment of those involved, said the ED.
With the Andhra Pradesh scam now out in the open, the liquor-for-kickbacks model and the administration-middlemen-liquor mafia nexus seem to have acquired a pan-India template. From Delhi to Chhattisgarh to Andhra Pradesh, the pattern appears familiar.
About the Author
Madhuparna Das, Associate Editor (policy) at CNN News 18, has been in journalism for nearly 14 years. She has extensively been covering politics, policy, crime and internal security issues. She has covered Naxa…Read More
Madhuparna Das, Associate Editor (policy) at CNN News 18, has been in journalism for nearly 14 years. She has extensively been covering politics, policy, crime and internal security issues. She has covered Naxa… Read More
Andhra Pradesh, India, India
September 20, 2025, 10:55 IST
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