Ex-IAS Officer Rajat Bhargava Blames Jagan Reddy in Andhra Liquor Scam

The Magistrate Testimony

Retired Indian Administrative Service officer Rajat Bhargava has blamed former Andhra Pradesh chief minister Y. S. Jagan Mohan Reddy for a multi-crore liquor scam. Bhargava served as special chief secretary of revenue and excise and director of the Andhra Pradesh State Beverages Corporation Limited from May 2020 to June 2024. He testified before the 3rd Additional Civil Judge in Vijayawada, where his statement was recorded under Section 164 of the Criminal Procedure Code. Legal experts note that this testimony holds substantive evidentiary value and cannot be easily retracted without facing perjury charges.

CMO Involvement Alleged

The Crime Investigation Department charge sheet states that the scam ranged from Rs 3,500 crore to Rs 4,000 crore between 2019 and 2024. Bhargava alleged that Jagan Reddy manipulated liquor prices to generate kickbacks for favoured distilleries. His statements also implicate key officials in the Chief Minister's Office, including K. Dhanunjaya Reddy, Praveen Prakash, and Officer on Special Duty P. Krishna Mohan Reddy, who allegedly struck down Bhargava's memos and objections.

Systemic Changes and Kickbacks

When the YSRCP government took power in 2019, it phased out private operators to retail liquor exclusively through the APSBCL. Investigators found that a digital tracking system was replaced with a manual order regime, choking out national brands in favour of obscure local products. The Special Investigation Team and Enforcement Directorate traced over Rs 1,000 crore in suspected kickbacks, with nearly 99 percent of transactions handled in cash.

Context

Statements recorded under Section 164 of the Criminal Procedure Code are verified by a magistrate to ensure they are voluntary, making them permanent judicial records that protect witnesses from turning hostile under political pressure. Similar legal procedures have featured in high-profile political investigations across India. The current Telugu Desam Party-led government faces ongoing political friction with the opposition YSRCP regarding these investigations.