Hyderabad/Amaravati, Sep 18 (PTI) The Enforcement Directorate (ED) on Thursday conducted searches in multiple states as part of its money laundering investigation into an alleged Rs 3,500 crore liquor scam in Andhra Pradesh that is claimed to have taken place during the previous YSRCP regime, officials said.

At least 20 locations across Telangana, Andhra Pradesh, Tamil Nadu, Karnataka and Delhi-NCR linked to entities and individuals who allegedly facilitated payment of kickbacks through bogus/inflated invoices were searched under the provisions of the Prevention of Money Laundering Act (PMLA).

Premises related to some accused persons are also being searched, they said.

Those covered include Arete Institute of Medical Sciences, Shree Jewellers Eximp, N R Udhyog LLP; The India Fruits Pvt. Ltd. (Chennai), Venkateshwara Packaging, Suvarna Durga Bottles, Rao Saheb Boorugu Mahadev Jewellers, Ushodaya Enterprises and Mohan Lal Jewellers (Chennai), as per the officials.

The federal probe agency registered a PMLA case to probe this alleged scam taking cognisance of a Andhra Pradesh Police SIT (special investigation team) FIR.

The police has filed three chargesheets in the case till now and among the prominent arrestees is YSRCP Lok Sabha MP PV Midhun Reddy.

The police alleged in the chargesheet that former chief minister and YSRCP leader YS Jagan Mohan Reddy was one of the recipients of kickbacks averaging Rs 50-Rs 60 crore per month. Jagan, however, has not been named as an accused in the said prosecution complaint.

The police also alleged that the ex CM chaired a meeting held in July 2019 related to the new liquor policy under which the outlets would be run by the AP State Beverages Corporation Limited (APSBCL), a government entity.

The chargesheet also alleged that the kickbacks were systematically laundered through low-profile individuals, such as office boys or employees.

"During the discussions held in the meeting on 29.07.2019 chaired by Chief Minister of Andhra Pradesh, matters relating to number of shops, hiring of shop premises, shop infrastructure, manpower transportation chargers, etc., have been finalised," the police said quoting a letter written by then Managing Director, APSBCL (Andhra Pradesh State Beverages Corporation Ltd).

Police claimed that Jagan also played a key role in the appointment of D Vasudeva Reddy, an IRTS officer and an accused in the case, as Managing Director of APSBCL despite him being recommended for other posts by then chief secretary and other officials.

According to the chargesheet, former bureaucrat Rajat Bhargava tried several times to alert the Chief Minister's Office about the irregularities in the APSBCL. However, his warnings fell on deaf ears. Bhargava served as special chief secretary for excise when the alleged scam took place.

The YSRCP has said that all the allegations made in the police chargesheets are baseless.

"Police officials quoting the chargesheets claimed that a portion of the liquor kickbacks was transferred to the employees and associates of the accused as salary adding it was also observed that several of such low-profile individuals were made to send the cash deposited into their account to other accused.

Several illegalities in modifying the Excise Policy in 2019 were found during the course of investigation, according to the police. PTI NES DV DV

Money laundering probe under PMLA targets alleged liquor policy kickbacks, searches conducted across multiple states. Enforcement Directorate conducted searches under the Prevention of Money Laundering Act into an alleged Andhra Pradesh liquor-related money laundering scheme, targeting entities and individuals accused of facilitating kickbacks via bogus invoices and laundering proceeds through low-profile intermediaries. The probe follows an Andhra Pradesh Police SIT FIR; multiple chargesheets have been filed and premises linked to named companies and persons were searched.