Andhra Pradesh liquor scam: SC denies bail to former CM Jagan Mohan Reddy's aides

New Delhi, May 16 (IANS) The Supreme Court on Friday declined to grant anticipatory bail to K. Dhanunjaya Reddy, a retired IAS officer and former secretary of former Chief Minister Jagan Mohan Reddy, and Krishna Mohan Reddy, a former Officer on Special Duty (OSD), in connection with the Andhra Pradesh liquor scam that allegedly took place during YSR Congress Party rule.

A bench of Justices J.B. Pardiwala and R. Mahadevan refused to interfere with an order of the Andhra Pradesh High Court rejecting their anticipatory bail pleas.

However, the Justice Pardiwala-led Bench clarified that if the accused are arrested, their regular bail applications will be considered on their own merits.

"The principles for grant of anticipatory bail differ from the grant of anticipatory bail. It is for the court concerned to apply the correct principles of law for the grant of regular bail,” it said.

In an interim order passed on Tuesday, the apex court had asked the Special Investigation Team (SIT) probing Andhra Pradesh liquor scam to not arrest the former bureaucrats till Friday (May 16) on the condition that the duo will join the investigation and fully cooperate.

With the disposal of the special leave petitions (SLPs) filed before the Supreme Court, the aides of former CM Jagan Mohan Reddy are likely to face custodial interrogation.

Last week, the Andhra Pradesh HC had denied bail to the former bureaucrats, citing the preliminary stage of the investigation into the alleged scam of Rs 3,200 crore.

Dhanunjaya Reddy and Krishna Mohan Reddy, accused numbers 31 and 32, respectively, in the case, have been grilled by the SIT about the recipients of kickbacks from the distillery companies.

The SIT arrested Govindappa Balaji, Director of Bharathi Cements Corporation, in Karnataka on Tuesday. He was brought to Vijayawada and produced before the ACB Court, which sent him to judicial custody till May 20.

Balaji, alleged to be a close aide of Jagan, is listed as accused number 33 in the case, who "distributed kickbacks" among liquor syndicate members through shell companies.

There are allegations that the YSR Congress Party leaders encouraged a new liquor policy, floated new brands during YSRCP rule, received kickbacks from the distillery companies, and caused huge losses to the government. The TDP-led NDA government constituted the SIT in November last year to investigate the allegations of irregularities and corruption in Andhra Pradesh State Beverages Corporation Limited (APSBCL) under the YSRCP tenure.

The TDP leaders alleged that some YSRCP leaders had links with the liquor manufacturers; they floated shell companies and made illegal money. The SIT on April 21 arrested Raj Kasireddy, who allegedly played a key role in the alleged illegal collection of nearly Rs 3,000 crore over a five-year period. He was the IT advisor to Jagan Mohan Reddy.

--IANS

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