Unmasking Andhra Pradesh's Rs 4,000 Crore Liquor Conspiracy: ED Probe Exposes Manual Overrides, Fake Firms, and Systemic Corruption

A staggering financial scandal, estimated at a colossal Rs 4,000 crore, has come to light in Andhra Pradesh, courtesy of an intensive investigation by the Enforcement Directorate (ED). This probe has meticulously unravelled a sophisticated liquor scam, characterized by an intricate web of 'manual overrides', phantom firms, and rampant cartelization that has allegedly bled the state's exchequer dry and enriched a select few.

The ED’s findings paint a grim picture of systemic corruption within the state's liquor trade, revealing how illicit practices were deeply embedded to manipulate excise policies for personal gain.

At the heart of this audacious fraud were 'manual overrides'—unauthorized alterations to billing software (Point of Sale or POS machines)—which allowed retailers to illicitly boost profits by selling liquor at inflated prices or siphoning off revenues. This was facilitated by bypassing the mandatory integration of POS systems with the excise department, turning a blind eye to genuine sales figures and enabling a parallel economy of unaccounted transactions.

Further compounding the deception was the widespread use of 'fake firms'.

These shell companies, often created with the sole purpose of bidding for and securing liquor licenses, acted as fronts for a powerful cartel. This cartel effectively monopolized the liquor trade in the state, stifling competition and dictating terms, thereby ensuring their dominance and maximizing illegal profits.

The modus operandi was simple yet devastatingly effective: control the supply chain, manipulate prices, and funnel profits through a network of complicit entities.

The investigation has highlighted disturbing parallels with the Delhi liquor scam, suggesting a playbook of corruption that transcends state borders.

The ED suspects that the Andhra Pradesh Excise Policy 2021-22 was allegedly tailor-made to favour this cartel. This policy, instead of fostering fair competition, inadvertently created loopholes that were expertly exploited to facilitate illegal earnings and money laundering on a massive scale.

Key to the scam's success was the alleged nexus between certain politicians, bureaucrats, and liquor retailers.

Sources indicate a 'fixed percentage of profit' was routinely shared among these individuals, transforming public service into a vehicle for private enrichment. This connivance allowed for the establishment of benami firms—companies registered in the name of proxies—that secured prime licenses, further solidifying the cartel's stranglehold on the market.

The ED's extensive raids and interrogations have started to pierce through this veil of secrecy.

Multiple arrests have been made, and significant assets have been attached, underscoring the gravity of the financial malfeasance. The agency's commitment to tracing the money trail and identifying all beneficiaries, irrespective of their position, remains unwavering.

This shocking exposé not only reveals the extent of corruption but also raises serious questions about governance, oversight, and the integrity of public policy formulation.

The Rs 4,000 crore liquor scam in Andhra Pradesh stands as a stark reminder of the corrosive impact of unchecked power and greed, leaving the state to grapple with massive revenue losses and a profound betrayal of public trust.