ED Conducts Raids in 8 States Over ₹4,000-Crore Andhra Pradesh Liquor Scam

Rapid Summary

• The Directorate of Enforcement (ED) conducted searches at 20 locations across Hyderabad, Bengaluru, Chennai, Thanjavur, Surat, Raipur, Delhi NCR, and Andhra Pradesh related to the Andhra Pradesh liquor scam.
• Operations were carried out under the Prevention of Money Laundering act (PMLA),uncovering evidence like bogus invoices,inflated transaction records,fake transport challans,digital chats implicating individuals absconding in Dubai.₹38 lakh unaccounted cash was seized.
• An FIR by Andhra Pradesh CID alleged losses to the State exchequer totaling ₹4,000 crore from October 2019 to March 2024 under a ‘new liquor policy.’
• Allegations included sidelining established brands for spurious ones based on kickbacks and manipulating procurement systems from automated approvals to manual processes. Kickbacks reportedly ranged from 15-20% invoice value.
• Funds were allegedly routed through fake vendor payments and shell companies and misused for election funding and personal gains. Gold purchases via jewellers were identified as part of money trails.
• Chargesheets by a Special Examination Team (SIT) accused officials of favoring select distilleries by corrupt practices including suppressing dissenters and coercion tactics.
• payments made by APSBCL suppliers were found redirected to dummy entities or inflated transactions with genuine businesses; funds used overseas or handed as kickbacks. ED investigations are ongoing.

Indian Opinion Analysis

The uncovering of the alleged ₹4,000 crore Andhra Pradesh liquor scam highlights systemic weaknesses in public policy execution when combined with opaque processes. This case demonstrates risks associated with replacing automated systems with manual approvals within procurement processes – an environment proven susceptible to manipulation through favoritism or coercion tactics.

beyond fiscal losses impacting state governance capabilities amid allegations misuse abroad too emerges – reflecting needs looming openness streamlining operations drives avoiding ever-potential leaks undermines official programming/accounts flow