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Andhra liquor scam: Key accused arrested after return from Dubai

The special investigation team (SIT) of the Andhra Pradesh Police has arrested one of the key accused in connection with an alleged multi-thousand-crore liquor scam that took place during the previous YSR Congress Party government, an official familiar with the matter said, adding that the accused had been absconding for the past two years

Published on: Aug 5, 2026, 08:43:06 IST
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The special investigation team (SIT) of the Andhra Pradesh Police has arrested one of the key accused in connection with an alleged multi-thousand-crore liquor scam that took place during the previous YSR Congress Party government, an official familiar with the matter said, adding that the accused had been absconding for the past two years.

HT Image
HT Image

According to an official, the accused, identified as Eshwar Kiran Kumar Reddy, was detained by immigration authorities at Hyderabad’s Rajiv Gandhi International Airport on Monday night after returning to India from Dubai via Sri Lanka. He was subsequently handed over to the SIT for further investigation.

“He was produced before the local ACB court in Vijayawada on Tuesday and was remanded to 14-day judicial custody,” the official said. He added that the accused was allegedly involved in creating shell companies to divert kickback money generated through the liquor distribution network.

People familiar with the matter said Kiran Kumar Reddy left for Dubai in November 2024 after the Telugu Desam Party (TDP)-led coalition government intensified its probe into the alleged scam. A Look Out Circular (LOC) was subsequently issued against him, and he is believed to have remained abroad while allegedly providing shelter to other accused.

So far, 12 people have been arrested in the case. Kiran Kumar Reddy recently moved the Supreme Court seeking anticipatory bail. The top court on July 30 rejected his plea and directed him to surrender before the investigating authorities. He returned to India following the court’s orders, police said.

The SIT, in its charge sheet filed on July 19, 2025, charged Kiran Kumar Reddy with laundering proceeds of the liquor scam. According to the SIT, he and prime accused Raj Kesireddy floated shell companies used to divert illicit commissions generated through liquor transportation and procurement operations. Kesireddy Rajasekhar Reddy alias Raj Kesireddy was the former Information Technology advisor to the Andhra Pradesh government during the YS Jagan Mohan Reddy government. He was arrested by the SIT and is presently in jail.

Originally from Tirupati, Kiran Kumar Reddy is the son of a police constable and graduated in engineering from the Indian Institute of Technology (IIT), Kharagpur. The SIT alleged that after coming into contact with Kesireddy, he became one of the principal operatives in the alleged scam and also brought other IIT graduates into the network.

He is also under investigation in separate cases related to alleged liquor transportation irregularities and money laundering being probed by the Enforcement Directorate (ED).

  • Srinivasa Rao Apparasu
    ABOUT THE AUTHOR
    Srinivasa Rao Apparasu

    Srinivasa Rao is Senior Assistant Editor based out of Hyderabad covering developments in Andhra Pradesh and Telangana . He has over three decades of reporting experience.

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