A local court in Amaravati has granted the Special Investigation Team (SIT) two day’s custody of YSRCP Lok Sabha member PV Midhun Reddy in connection with the alleged Rs. 3,200 crore liquor scam that reportedly took place during the party’s previous government between 2019 and 2024.
Reddy, a three-time MP from Rajampet and listed as an accused in the case, was arrested on July 19. He had earlier been questioned in April and July, but investigators sought fresh custody, citing his alleged key role in money transfers, brand manipulation and the use of shell companies. The SIT pressed for five days’ custody to probe conspiracy-related statements, but the court limited the period to September 19 and 20, from 8 am to 6 pm each day, under strict conditions including medical check-ups, presence of counsel, and humane treatment.
The prosecution alleged a political-business nexus in liquor procurement, claiming suppression of popular brands, preferential allocation to new labels, and systematic kickbacks. Reddy, in his counter petition, rejected the allegations as politically motivated and argued that he was added later to the case after his anticipatory bail efforts failed. His counsel further pointed out that the original FIR did not name him, previous interrogations yielded no fresh information, and that the SIT’s reliance on hearsay witnesses made additional custody unnecessary.
The Court concluded that a brief custodial interrogation was warranted to verify the allegations of conspiracy, but held that the SIT’s demand for prolonged custody was disproportionate. Accordingly, it partly allowed the petition, directing that the accused be remanded to custody for only two days.
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