A startling upheaval in Andhra Pradesh’s political spectrum, P. V. Midhun Reddy, the YSR Congress Party Lok Sabha floor leader from Rajampet, was detained on Saturday, 19 July 2025, by the state’s Special Investigation Team (SIT). The arrest forms a crucial part of the ongoing probe into the alleged ₹3,200 crore liquor policy scam that dates back to the YSRCP regime between 2019 and 2024.
Midhun Reddy was summoned to the SIT office in Vijayawada, arriving from Delhi, where he was questioned for nearly seven hours before being placed under arrest in the evening. Andhra Pradesh’s Home Minister, Vangalapudi Anitha, confirmed: “Yes (he has been arrested). The process (to produce him before a court) is going on”.
The SIT alleges Midhun Reddy is Accused Number 4, playing a core role in orchestrating excise policy changes that favoured certain local liquor brands in return for substantial kickbacks. The inquiry contends he manipulated order-placing systems and diverted funds via shell entities.
Coinciding with the arrest, a 300-page chargesheet was filed in the Vijayawada court, substantiated by more than 100 forensic reports, electronic evidence, and statements from 268 witnesses. Authorities have so far seized assets valued at approximately ₹62 crore.
His attempts to thwart the arrest through legal channels met with rebuffs. On 15 July, the Andhra Pradesh High Court denied his anticipatory bail plea, stating custodial interrogation was necessary given the gravity of accusations. The Supreme Court followed suit on 18 July, dismissing his appeal and seeking clarity on how a chargesheet could be filed without formal arrest.
Further, the SIT issued a Look Out Circular on 15 July to prevent Mr Reddy from evading legal proceedings. They are actively tracking developments and expanding the investigation across Andhra Pradesh and Telangana.
YSRCP has vociferously condemned the arrest, condemning it as a manifestation of political vendetta by Chief Minister Chandrababu Naidu. In a signed statement, party spokesperson Malladi Vishnu declared:
“The more vindictive the actions of the Chandrababu Naidu government, the stronger our resolve becomes to fight back…”.
Senior leaders Botsa Satyanarayana, Perni Venkatramaiah, Ambati Rambabu, Merugu Nagarjuna, and general secretary G Srikanth Reddy endorsed the claim, asserting the evidence was fabricated and the chargesheet lacked clarity on the MP’s specific role.
The SIT’s principal accusations include policy manipulation, procurement irregularities, illicit commissions, and funds laundering via shell firms. Their ongoing papers will guide the next stage of the case.
So far, 12 individuals have been arrested in the probe, including former YSRCP IT adviser Kasireddy Rajasekhar Reddy, retired IAS officer K. Dhanunjaya Reddy, and former bureaucrat Krishna Mohan Reddy. Future charges are expected to follow as the SIT continues its inquiry.
Midhun Reddy is set to appear before the ACB court in Vijayawada on Sunday, 20 July 2025, marking a pivotal moment as this high-profile case unfolds.
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