Informist, Monday, Jul. 21, 2025

By Narayana Krishna

HYDERABAD - The crime investigation department of the Andhra Pradesh police has named Tilaknagar Industries Ltd. and several private distilleries and suppliers in its charge sheet in an alleged INR 35.00 billion liquor scam in which former Andhra Pradesh chief minister Y.S. Jaganmohan Reddy, leaders of his party, and some state bureaucrats are accused.

According to the 305-page charge sheet, a copy of which was reviewed by Informist, Tilaknagar Industries allegedly paid INR 2.18 billion as "kickbacks" to "powerful people" in government during 2019-24 to secure orders. The Andhra Pradesh State Beverages Corp. Ltd., nodal agency controlling liquor sales in the state, procured INR 238.38 billion worth of liquor from 111 companies and agencies.

Tilaknagar Industries was the largest supplier of liquor to the state agency, securing orders worth INR 14.72 billion during the period. The charge sheet mentioned the names of over 100 companies, allegedly inflating liquor prices and paying kickbacks as part of the larger conspiracy to benefit from liquor sales in the state.

The special investigation team set up by the Andhra Pradesh Crime Investigation Department has submitted the charge sheet in a court in Vijayawada. While the charge sheet has not mentioned Tilaknagar Industries as a co-accused, the investigation report alleges that the company was involved in the conspiracy and routed all its kickbacks via gold and jewellery companies.

Reacting to the news, shares of Tilaknagar Industries fell sharply to 5% up from 11% up earlier. The shares closed 5.6% higher at INR 418.80 on the National Stock Exchange.

"Tilaknagar Industries Ltd. used its privileged position and influence in APSBCL to secure massive sales. To retain this advantage, it routed a share of its legitimate revenue to jewellery merchants," according to the charge sheet. "The received gold was systematically handed over to syndicate handlers. This gave the transactions a veneer of legal GST-compliant business expense, while effectively converting white banked money into untraceable black assets."

The Tilaknagar Industries episode demonstrates that a liquor syndicate in the state exerted ruthless control, compelling even major legacy players to divert part of their legitimate state income through covert gold transactions, the police said. The charge sheet alleges that powerful people in the government imposed inflated prices and fixed forced kickbacks averaging 15-20% of the base price per liquor case. The police also alleged that responsible people in government made changes to the liquor procurement policy to benefit in illegal ways.

The same modus operandi is found to have been uniformly applied across a broad network of entities, including ADAN Distilleries, Leela Distilleries, SPY Agro Industries, SNJ Sugars, PV Spirits, UV Distilleries, Amber Spirits, Virtuoso Beverages, Vahini Distilleries, Sharvani Alco Brew, Tilaknagar Industries, BRK Spirits, GSB & Co LLP, Tropical Inbev, Brindavan Marketing, B9 Beverages, and many others, the police said.

The probe, initiated by the Chief Minister N. Chandrababu Naidu-led Telugu Desam Party government, is creating political ripples in Andhra Pradesh. The state Crime Investigation Department has arrested Yuvajana Sramik Rythu Congress Party Lok Sabha member P.V. Midhun Reddy in the case while naming former chief minister Jaganmohan Reddy among the accused. The state police has already arrested several officials linked to liquor sales during Jaganmohan Reddy's rule. End

Edited by Rajeev Pai

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