Hyderabad, Jan 19 (PTI) The Enforcement Directorate (ED) has summoned YSRCP MP P V Midhun Reddy for questioning in a money-laundering case linked to a Rs 3,500-crore liquor "scam" in Andhra Pradesh that allegedly took place during the previous YSRCP dispensation in the state, officials said on Monday.

The 48-year-old YSRCP Parliamentarian from Rajampet has been asked to depose at the ED's zonal office here on January 23. His statement will be recorded under the provisions of the Prevention of Money Laundering Act (PMLA), the officials said.

He was named as an accused and arrested by the Andhra Pradesh Police special investigation team (SIT), which probed the case, in July 2025. He is out on bail currently.

The agency has also summoned ex-MP Vijayasai Reddy to appear on January 22 for questioning into the working of the liquor policy that was implemented in Andhra Pradesh between 2019 and 2024, they added.

Vijayasai Reddy has been named as an accused in the FIR filed by the Andhra Pradesh SIT. It has been alleged that illicit funds of the trade were passed through him to former chief minister and YSRCP leader Y S Jagan Mohan Reddy.

The former chief minister has claimed that the case is a result of a "political conspiracy".

The federal probe agency registered a PMLA case in September 2025 to probe the alleged scam, taking cognisance of the SIT complaint.

Police have so far filed three chargesheets in the case. The SIT alleged in the chargesheets that Jagan Mohan Reddy was one of the recipients of kickbacks averaging Rs 50 crore to Rs 60 crore per month.

The former chief minister, however, has not been named as an accused in the said prosecution complaints.

Police have also alleged that Jagan Mohan Reddy chaired a meeting in July 2019 related to the new liquor policy under which the outlets selling alcohol would be run by the Andhra Pradesh State Beverages Corporation Limited (APSBCL), a government entity.

The chargesheets also allege 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 the Chief Minister of Andhra Pradesh, matters relating to the number of shops, hiring of shop premises, shop infrastructure, manpower transportation chargers, etc., have been finalised," police have said, quoting from a letter written by the then APSBCL managing director.

Police have claimed that Jagan Mohan Reddy also played a key role in the appointment of D Vasudeva Reddy, an Indian Railway Traffic Service (IRTS) officer and an accused in the case, as the managing director of the APSBCL, despite him being recommended for other posts by the then chief secretary and other officials.

According to the chargesheets, 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 the special chief secretary for excise when the alleged scam took place.

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

Quoting from the chargesheets, police officials have claimed that a portion of the liquor kickbacks was transferred to the employees and associates of the accused as salary, and it was also observed that several of such low-profile individuals were made to send the cash deposited into their accounts to other accused.

Several illegalities in modifying the excise policy in 2019 were found during the course of the investigation, police have said. PTI NES GDK RHL

ED summons YSRCP MP P V Midhun Reddy for questioning in alleged AP liquor money laundering probe under PMLA. Enforcement Directorate summoned YSRCP MP P V Midhun Reddy for questioning under the Prevention of Money Laundering Act in an alleged Rs 3,500-crore liquor money laundering probe that followed a state SIT complaint; chargesheets allege systematic kickbacks laundered through low-profile intermediaries, irregular changes to the 2019 excise policy, and contested appointments within the Andhra Pradesh State Beverages Corporation Limited.