SC Grants Interim Protection in ₹3,500-Crore AP Liquor Case
The top court issued notices to Andhra Pradesh and others on the pleas of Balaji Govindappa, Pellakuru Krishna Mohan Reddy and K Dhanunjaya Reddy and protected them from surrender till further orders
New Delhi: The Supreme Court on Wednesday granted interim protection from surrender to three persons accused in the alleged ₹3,500-crore Andhra Pradesh liquor “scam.”
A two-judge bench of Chief Justice of India Surya Kant and Justice Joymalya Bagchi stayed the Andhra Pradesh High Court order that had cancelled their default bail. The High Court had directed the accused to surrender before the trial court on November 26 and apply for regular bail.
The apex court issued notices to the Andhra Pradesh government and others on the petitions filed by Balaji Govindappa, Pellakuru Krishna Mohan Reddy and K. Dhanunjaya Reddy, and protected them from surrender until further orders.
During the hearing, the bench noted that there were around 400 witnesses in the case, a number that might eventually reduce to 200. “Even if we assume 100 witnesses, how long will it take? Many applications for default bail become infructuous when courts consider regular bail and find that liberty can be granted without affecting a fair trial,” the CJI observed.
Senior advocate Siddharth Luthra, appearing for the State, said the trial court had initially rejected the chargesheet, but it had since been restored and the State would expedite the proceedings.
“We don’t want academic discussions that waste the court’s time. You must tell us what purpose would be served by keeping them in custody. If there is concern about influencing witnesses, we can impose conditions,” the CJI said.
The Supreme Court issued notice and directed the State to file its response within 10 days. “Meanwhile, the petitioners are exempted from surrendering, subject to the conditions already imposed by the trial court,” the bench said.
Dhanunjaya Reddy is a retired IAS officer and former Secretary in the Chief Minister’s Office. Krishna Mohan Reddy was the OSD to then Chief Minister Y.S. Jagan Mohan Reddy, and Balaji Govindappa was a director of Bharati Cements.
The prosecution has alleged a political–business nexus involving manipulation of liquor procurement between 2019 and 2024, suppression of established brands, preferential orders to new labels and systematic receipt of kickbacks.