Ex-excise chief tells ED Jagan aides blocked objections to liquor pricing | Hyderabad News

Hyderabad: Retired IAS officer Rajat Bhargava has reportedly told Enforcement Directorate (ED) that key associates of Andhra Pradesh former chief minister YS Jagan Mohan Reddy blocked his attempts to question alleged irregularities in liquor pricing and procurement during the previous regime, according to ED sources.Bhargava, who served as special chief secretary (excise), allegedly told ED investigators that former CMO officials Dhanunjaya Reddy and Krishna Mohan Reddy, along with key accused Kesireddy Raj Reddy, intervened whenever he raised objections to increases in liquor base prices and preferential supply orders. He reportedly stated that Kesireddy coordinated these activities at the behest of Jagan. However, Bhargava is learnt to have told ED that Jagan did not directly issue instructions to him.Pricing objections overruledBhargava’s account broadly reiterates statements he had earlier made to the special investigation team (SIT) and a Vijayawada magistrate. In his Sept 29 statement recorded under Section 183 of the BNSS, he reportedly named Jagan and alleged that steep hikes in base prices were pushed through to generate kickbacks for favoured distilleries.Bhargava stated that he had recommended increasing the additional retail excise duty to boost revenue for the state govt. Instead, he alleged, base prices were repeatedly raised in a manner that benefited suppliers. According to him, CMO officials were believed to have repeatedly cited Jagan’s instructions, warned him against interference, and rejected his objections and official memos.He reportedly told investigators that sustained pressure from the CMO led him to issue orders first increasing and later reducing the additional retail excise duty.Bhargava further alleged that the authority to issue orders for sale was taken away from the excise commissioner and that an automated allocation system was replaced with manual processing. He claimed that objections to procurement allocations and brand selection were ignored.Procurement, transport under scrutinyED is investigating alleged manipulation of procurement by Andhra Pradesh State Beverages Corporation Ltd (APSBCL) between 2019 and 2024. Investigators claim the alleged irregularities caused a loss of about ₹3,500 crore to the exchequer, with kickbacks amounting to 15-20% of base prices and monthly collections allegedly touching ₹50-60 crore.ED also alleged that the proceeds were laundered through shell companies, fake vendors and investments in India and Dubai. According to ED, it has traced ₹1,048 crore in alleged kickbacks and attached assets worth ₹441 crore.A related probe is also examining transport tenders awarded between 2020 and 2024, in which investigators have alleged a loss of ₹195.3 crore.