ED Questioned Chevireddy Family in AP Liquor Scandal
The Enforcement Directorate is questioning the Chevireddy family members, including Lakshmi and Harshith Reddy, in connection with suspected money laundering linked to AP's liquor policy. This investigation follows Chevireddy Bhaskar's arrest and property attachments authorised by the government.
Highlights
- •Enforcement Directorate questioned Lakshmi Kanthamma and Harshith Reddy
- •Chevireddy Bhaskar Reddy named as accused 38 in the case
- •Family assets worth ₹63 crore are under attachment
- •Investigation probes allegations of liquor-related kickbacks and illicit funds
Hyderabad: The Enforcement Directorate (ED) on Tuesday interrogated Lakshmi Kanthamma, wife of former YSR Congress Party MLA Chevireddy Bhaskar Reddy, and their younger son Harshith Reddy at its Hyderabad office.
This comes as part of an ongoing investigation into suspected money laundering and irregularities related to the state's liquor policies. Earlier investigations revealed that the ED suspects financial transactions linked to Chevireddy's family members and business interests may have been used for asset acquisitions and alleged hawala transactions, among other activities.
Investigation Details
Bhaskar Reddy has been named accused 38 in the case. His elder son Mohith Reddy, who was once the chairman of Tirupati Urban Development Authority (TUDA), is listed as accused 39.
The ED initiated searches at multiple locations linked to Chevireddy and others in Hyderabad, Tirupati, and Vijayawada. Family members later received notices and were directed to appear before officials with relevant documents. Currently, the agency is analysing bank statements, financial records, and material seized during these searches.
In June 2025, Chevireddy was arrested by the Special Team (ST) after he was intercepted at Bengaluru airport, followed by his judicial custody later that month. In November 2025, the government authorised the Special Team to initiate the attachment of properties worth over ₹63 crore belonging to Chevireddy and his family.
During questioning, Mohith Reddy affirmed that the family had fully cooperated with investigators and submitted details of all assets sought by the ED. He alleged that any legal challenges against the family were politically motivated and denied allegations that the family acquired properties using bribe money. Mohith also stated that their wealth stemmed from a real estate business operating since 1996, asserting a vow against alcohol after losing close relatives to addiction.
The ED alleges that funds generated through liquor-related kickbacks were diverted for election activities. Investigators are examining allegations of TUDA vehicles being used to transport cash and whether official vehicle log-books were manipulated to conceal movements. They also suspect some case-linked funds might have been invested in mining ventures in African countries, cross-checking statements with banking records, toll plaza data, and vehicle movement details.
