ED Questions Chevireddy’s Wife, Son in AP Liquor Scam Case
The ED alleges that funds generated through liquor-related kickbacks were diverted for election activities.
Tirupati: The Enforcement Directorate on Tuesday questioned Lakshmi Kanthamma, wife of former YSRC MLA Chevireddy Bhaskar Reddy, and their younger son Harshith Reddy at its Hyderabad office in relation to the AP liquor scam.
The agency had issued notices to members of Chevireddy’s family in connection with investigations into suspected money laundering and irregularities linked to the state’s liquor policy, including the movement of funds through accounts of the family members and associated businesses.
According to sources, investigators are examining financial transactions carried out in the names of Lakshmi and Harshith and whether the funds were used to acquire assets. The agency is also looking into alleged hawala transactions, the flow of money linked to liquor licences and business operations, and other suspected money laundering activities.
Bhaskar Reddy has been named as accused 38 in the case, while his elder son and former Tirupati urban development authority chairman Mohith Reddy is listed as accused 39.
In June 2025, Chevireddy was arrested by the SIT after he was intercepted at Bengaluru airport and later remanded in judicial custody. In November 2025, the government authorised the SIT to initiate the attachment of properties worth over `63 crore belonging to Chevireddy and his family.
In April 2026, the ED conducted searches at multiple locations linked to Chevireddy and others in Hyderabad, Tirupati and Vijayawada. Family members who later received ED notices were directed to appear before officials with relevant documents. The agency is now analysing bank statements, financial records and material seized during those searches.
The ED alleges that funds generated through liquor-related kickbacks were diverted for election activities. Investigators are also examining allegations that TUDA vehicles were used to transport cash, official vehicle log-books were manipulated to conceal movements, and some funds linked to the case were invested in mining ventures in African countries.
Officials are also cross-checking statements with banking records, toll plaza data and vehicle movement details gathered during the investigation.
Reacting to the questioning of his mother and brother, Mohith said the family had fully cooperated with investigators and submitted details of all assets sought by the agency. He alleged that the cases filed against the family were politically motivated and said they would challenge them through legal means.
He also rejected allegations that the family acquired properties using bribe money.
In earlier submissions before the ACB court, Chevireddy denied the allegations and maintained that the family's wealth came from a real estate business that was operating since 1996. He also stated that neither he nor his children had ever been involved in the liquor trade, citing a family vow against alcohol after losing close relatives to addiction.
