Former Minister Merugu Nagarjuna condemns TDP coalition for fabricated liquor scam allegations

Tadepalli, April 26, 2025: Former Minister and senior YSR Congress Party (YSRCP) leader Merugu Nagarjuna has strongly criticized the Telugu Desam Party (TDP)-led coalition government for orchestrating a politically motivated liquor scam narrative against YSRCP leaders. He described the alleged scam as a scripted political drama crafted by Chandrababu Naidu to divert public attention from TDP’s past liquor scandals and the coalition’s ongoing irregularities.

In a press statement, Nagarjuna asserted that the Special Investigation Team (SIT) report is fabricated and lacks credible evidence. He clarified that the so-called liquor scam during YSRCP’s tenure (2019–24) is entirely fictitious, relying solely on coerced statements obtained through harassment. He highlighted that former Andhra Pradesh State Beverages Corporation Limited (APSBCL) officials, such as Vasudeva Reddy, and lower-level employees, including Satya Prasad and Anusha, were threatened into providing false testimonies. Despite seeking anticipatory bail from the High Court three times, Vasudeva Reddy was coerced into submitting a false statement under CrPC Section 164. After complying, he was promptly relieved from his deputation, exposing the SIT’s manipulative tactics. Nagarjuna also noted that distillery directors faced physical assaults to extract statements.

Nagarjuna emphasized that the SIT has failed to produce any financial trail, forensic proof, or documentary evidence to substantiate its allegations.

He clarified that Raj Kasireddy, portrayed as the central figure in the scam, had no involvement in liquor policies or APSBCL operations. The SIT itself admitted that Kasireddy refused to sign any confession, yet his name, along with that of Y.S. Jagan Mohan Reddy, was forcibly included in the narrative. Nagarjuna warned that accepting coerced confessions risks turning investigations into political weapons.

He underscored that Excise Department data confirms YSRCP’s reforms led to a significant decline in liquor sales, reducing distillery profits. Logically, distilleries would not pay bribes to a government that curtailed their earnings, debunking the SIT’s claims of kickbacks. Initially, the SIT alleged the scam caused losses to the exchequer, but upon finding no evidence, it shifted to accusing YSRCP leaders of receiving kickbacks, Nagarjuna pointed out.

Shifting focus to TDP’s own liquor scam during its 2014–19 tenure, Nagarjuna stated that TDP leaders looted Andhra Pradesh through systemic corruption. He noted that 53.21% of liquor purchases were made from just four favored distilleries. Chandrababu Naidu signed two secret Government Orders (G.O. 218 and G.O. 468), which eliminated mandatory fees for liquor shops and bars, causing an annual revenue loss of Rs 1,300 crore, totaling over Rs 5,000 crore over five years. Additionally, liquor was sold at 20% above the Maximum Retail Price (MRP), resulting in a Rs 20,000 crore scam.

Nagarjuna reminded that the Comptroller and Auditor General (CAG) raised objections to these irregularities, and a Crime Investigation Department (CID) case was registered against Chandrababu Naidu and other TDP leaders under serious criminal and anti-corruption laws. He insisted that the real liquor scam occurred under TDP’s regime, with no wrongdoing under YSRCP.
Nagarjuna further alleged that the current TDP-led coalition is reviving the corrupt liquor practices YSRCP had dismantled. He pointed out that TDP MLAs have admitted to the return of belt shops and illegal liquor outlets. While YSRCP shut down 43,000 belt shops and reduced liquor outlets by 33%, the TDP government is now promoting permit rooms, backdoor sales, and weakening regulatory checks.

He described the revival of the fake liquor scam narrative as a deliberate attempt by the coalition to cover up its ongoing irregularities. The government is using SITs, media propaganda, and lawless tactics to mask its failures. Nagarjuna also noted that the CID case against Chandrababu Naidu’s liquor scam was quietly shelved after TDP returned to power.

Demanding accountability, Nagarjuna called for the reopening of the CID case against Chandrababu Naidu and suggested it be handed over to the Central Bureau of Investigation (CBI) for a fair and independent probe. He stressed that the people of Andhra Pradesh deserve to know the truth about the real liquor scam that took place during TDP’s rule.

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