The Andhra Pradesh government has launched a major investigation into what could be one of its biggest corruption cases—the Andhra liquor scam, worth ₹3,200 crore.
On November 6, a Special Investigation Team (SIT) was set up to look into allegations that liquor companies paid massive kickbacks to politicians and bureaucrats during the previous YSR Congress Party (YSRCP) regime.
These bribes allegedly secured preferential treatment in the highly regulated state liquor market—think bulk orders, supply contracts, and sweet business deals handed out like party favors.
110 Liquor Companies Under Scanner
The SIT is now collecting data from 110 liquor manufacturers, including industry giant Allied Blenders and Distillers, best known for Officer’s Choice whisky. The probe includes requests for historical records on production volume, cost of goods, and supply chain data.
Alok Gupta, Managing Director of Allied Blenders, confirmed that his company is cooperating fully and that no bank accounts have been frozen—yet.
That’s one cork still in the bottle, but we’ll see how long it stays sealed.
So far, two arrests have been made—retired IAS officer K. Dhanunjaya Reddy and Officer on Special Duty P. Krishna Mohan Reddy. Both held key positions during the YSRCP’s tenure and are believed to have played roles in facilitating the kickbacks.
The SIT is expected to file a chargesheet within 4–6 weeks. Whether that’s a real turning point or just political theatre remains to be seen.
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Meanwhile, Allied Blenders Is Booming
Even as the investigation brews, Allied Blenders reported a net profit of ₹78.62 crore in Q4, riding the wave of premiumisation. Its Prestige and Above (P&A) segment grew by 32.7%, accounting for over half of its revenue.
The company is also expanding its global footprint—now exporting to 23 countries, including a recent first shipment to the US.
Despite the scandal cloud, business seems to be pouring in.
The Road Ahead: Markets, Margins, and Murk
Allied Blenders expects FY26 to outperform FY25, thanks to stable politics and clear policy announcements. However, its margins might take a hit—50 to 200 basis points—if the India-UK Free Trade Agreement kicks in, affecting export dynamics.
It’s an ironic twist: While India’s liquor barons go global, at home they’re being called into courtrooms.This isn’t just about shady liquor deals. It’s about a system that allowed alleged corruption to pass for policy. If proven, it shows how political power can be sold off in cases of whiskey and favours. And when government regulation becomes a trading card for influence, everyone else loses.
This time, let’s demand receipts—literally.
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