Mumbai bullion operator could be crucial link in Andhra liquor ‘scam’, investigators say
SIT claims it has found evidence linking two key accused with Anil Chokhara, who was arrested last month and is accused of creating a network of shell companies to funnel money
The Special Investigation Team of Andhra Pradesh CID, probing an alleged ₹3,500-crore liquor scam, claims to have found evidence linking two key accused – Kesireddy Rajasekhar Reddy and Muppidi Avinash Reddy – with Mumbai-based bullion operator Anil Chokhara. Chokhara, who was arrested on November 13 in Mumbai, allegedly created a network of shell companies into which money from the liquor scam was funnelled, the SIT has alleged. He has been made accused No. 49 in the case.
The SIT alleges that Chokhara engineered an elaborate shell company network to funnel ₹77.55 crore in kickbacks from major distilleries during the previous Y S Jagan Mohan Reddy-run YSRCP government.
According to investigation records, distilleries linked to Kesireddy Rajasekhar Reddy (A1) and Muppidi Avinash Reddy (A7) allegedly diverted funds to multiple bogus firms to convert black money into white, which was later used to pay bribes within the liquor syndicate.
Chokhara’s arrest has helped investigators establish a direct financial trail allegedly connecting the diverted funds to the two accused, an SIT official said.
Investigators claim distilleries reportedly controlled by A1 and A7 diverted large sums using fraudulent mechanisms. The SIT states that ₹77.55 crore was diverted to four Mumbai-based shell firms.
Investigations further show that the money was allegedly layered across 32 additional entities, obscuring the audit trail.
In total, 35 shell companies – allegedly created through impersonation, dummy directors, falsified documentation, and manipulated bullion-trade transactions – were found under Chokhara’s control.
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Chokhara, 44, originally from Rajasthan and currently residing in Navi Mumbai, was earlier booked in an alleged ₹304-crore bank fraud case and multiple cases registered by the Mumbai Police’s Economic Offences Wing.
He was arrested on November 13 at Sanpada Police Station, Navi Mumbai, and produced before a local court in Thane, which issued a transit warrant directing that he be taken before the ACB court in Vijayawada by November 15.
He was later remanded to police custody. The SIT questioned him about the shell companies, which led police to uncover the alleged chain of beneficiaries and political links that enabled the diversion of funds during the YSRCP regime.
Andhra Pradesh Crime Investigation Department had filed a chargesheet on July 20, alleging that liquor companies paid bribes to certain people during the previous YSR Congress Party government from 2019 to 2014. The chargesheet, filed in an ACB court in Vijayawada, claimed that the bribes were paid for contracts from Andhra Pradesh State Beverages Corporation Limited (APSBCL). The CID had filed a case last year alleging a Rs 3,500 crore liquor scam during Jagan’s regime. According to its chargesheet, Rajashekar Reddy and P V Midhun Reddy, a YSRCP leader and three-time MP, were the alleged masterminds of the liquor scam. Both have been arrested in the case.
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The chargesheet alleges that YSRCP chief Y S Jagan Mohan Reddy was among those who allegedly received kickbacks, but has not named him as an accused. Rajashekar Reddy and P V Midhun Reddy have also been accused of funnelling money through over 30 shell firms. The amount was allegedly invested to acquire land, gold and luxury assets in Dubai and Africa, as per the chargesheet.
Sreenivas Janyala is a Deputy Associate Editor at The Indian Express, where he serves as one of the most authoritative voices on the socio-political and economic landscape of Telangana and Andhra Pradesh. With a career spanning over two decades in mainstream journalism, he provides deep-dive analysis and frontline reporting on the intricate dynamics of South Indian governance.
Expertise and Experience
Regional Specialization: Based in Hyderabad, Sreenivas has spent more than 20 years documenting the evolution of the Telugu-speaking states. His reporting was foundational during the historic Telangana statehood movement and continues to track the post-bifurcation development of both Telangana and Andhra Pradesh.
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