Andhra Pradesh liquor scandal is bigger than Delhi's, says MP Lavu Sri Krishna Devarayulu

VIJAYAWADA: TDP MP Lavu Sri Krishna Devarayulu urged the union home minister Amit Shah to investigate the liquor scandal that occurred in Andhra Pradesh during the YSRCP regime. He stated that AP’s liquor scam is larger than the Delhi liquor scandal.
The scam resulted in a loss of ₹18,860.52 crore to the state exchequer from 2019 to 2024, the MP explained. He requested Amit Shah to order a probe by ED and other central agencies to uncover the huge scandal. Krishna Devarayulu met the union home minister Amit Shah a day after making a startling revelation in the Lok Sabha about the liquor scandal.
Lavu Sri Krishna Devarayulu, in his speech on the Finance Bill 2025-26, underscored India's economic trajectory while highlighting the unprecedented corruption in Andhra Pradesh's liquor trade under the previous regime. He exposed the massive liquor scam in Andhra Pradesh, calling it even larger than the Delhi excise policy scandal.
"The then ruling party YSRCP misled the public by initially promising prohibition but later facilitated a monopolised liquor industry under their control. Major distilleries like SPY Agro Industries in Nandyal were illegally taken over, and benami distilleries were floated to produce sub-standard liquor, putting thousands of crores into the hands of party-linked businesses," he alleged.
He said that 20 Indian Made Foreign Liquor (IMFL) distilleries were illegally captured, with 60% of production capacity allotted to newly formed players for massive commissions. He mentioned that 38 new liquor brands were introduced between 2019 and 2024, all controlled by YSRCP cronies.
He explained that the market was manipulated to eliminate popular liquor brands from 2018-19 and replace them with unknown, low-quality brands, endangering consumers.
"Twenty-six new liquor companies, including Adan (established in Dec 2019), Graysons, Leela, JR Associates, and PV Spirits (Mar 2020), made massive profits through opaque business practices, selling ₹20,356 crore worth of liquor," alleged the MP.
He explained that Andhra Pradesh State Beverages Corporation Limited (APSBCL) took full control of liquor procurement, favouring only brands controlled by the ruling party’s associates.
Unlike any other state, AP introduced liquor brands exclusive to its market, creating a closed ecosystem that eliminated competitors and enriched select groups. He said that digital transactions accounted for just ₹615 crore out of ₹99,413 crore in revenue from liquor sales over the past five years.
He alleged that reports indicate that Rs 2,000 crore was siphoned out of AP to Dubai by N. Sunil Reddy, using the front of an infrastructure company.
He stated that the scam resulted in a loss of Rs 18,860.52 crore to the state exchequer from 2019 to 2024—money that rightfully belongs to Scheduled Castes (SC), Scheduled Tribes (ST), Backward Classes (BC), and minority communities.