Supreme Court Affirms Legality of K. Rajasekhar Reddy's Arrest in ₹3,200 Crore Liquor Scam
The Supreme Court on Friday upheld the arrest of K Rajasekhar Reddy, a prime accused in the ₹3,200-crore Andhra Pradesh liquor scam, ruling that it did not violate constitutional safeguards under Article 22 or procedural norms under the Bharatiya Nagarik Suraksha Sanhita. A Bench of Justices JB Pardiwala and R Mahadevan noted that while full offence details need not be provided at arrest, sufficient information must be given to inform the person of the grounds for detention. The Court found no merit in the appeal and dismissed it accordingly.
5/25/20252 min read
The Andhra Pradesh liquor scam, estimated at ₹3,200 crore, allegedly involved manipulation of the state's liquor procurement and distribution system between October 2019 and March 2024. K. Rajasekhar Reddy, also known as Raj Kasireddy and a former IT advisor to then-Chief Minister Y.S. Jagan Mohan Reddy, is identified as the prime accused. Investigations by the Special Investigation Team (SIT) revealed that the automated procurement system was replaced with a manual process, favoring certain liquor brands in exchange for substantial kickbacks. These kickbacks, reportedly amounting to ₹50–60 crore monthly, were allegedly laundered through shell companies and hawala transactions. The Enforcement Directorate (ED) has also initiated a money laundering probe under the Prevention of Money Laundering Act (PMLA) based on these finding.
Rajasekhar Reddy and his father, Upendar Reddy, challenged the legality of Rajasekhar's arrest, arguing that the Andhra Pradesh Crime Investigation Department (CID) lacked jurisdiction since Rajasekhar resided in Telangana. They also contended that procedural lapses occurred during the arrest, including discrepancies between the arrest notice and the remand report, and the CID's failure to obtain prior permission under Section 17A of the Prevention of Corruption Act. The Supreme Court, however, found no merit in these arguments. The bench, comprising Justices J.B. Pardiwala and R. Mahadevan, noted that the CID acted in accordance with legal procedures and that the objections raised were not sufficient to invalidate the arrest.
On May 23, 2025, the Supreme Court dismissed the petitions filed by Rajasekhar Reddy and Upendar Reddy, affirming the legality of Rajasekhar's arrest in the liquor scam case. The court advised them to seek relief through the trial court, as Rajasekhar was already in judicial custody. The bench emphasized that the CID had followed due process and that the arrest was conducted within the bounds of the law.
The Supreme Court's decision underscores the judiciary's stance on upholding lawful investigative procedures, even in politically sensitive cases. By affirming the legality of Rajasekhar Reddy's arrest, the court has paved the way for the trial to proceed without jurisdictional hindrances. The ongoing investigations by the SIT and the ED continue to unravel the complexities of the alleged ₹3,200 crore liquor scam, with several high-profile individuals under scrutiny.