Vijayawada, July 20 (IANS) A city court on Sunday sent YSR Congress Party (YSRCP) MP, P. V. Midhun Reddy, to judicial custody in the alleged liquor scam case.

The Special Investigation Team (SIT), which arrested the MP on Saturday night, produced him before the ACB court judge, who remanded him to judicial custody till August 1.

Midhun Reddy, who is the YSR Congress Party’s floor leader in Lok Sabha, will be shifted to Rajahmundry Central Jail.

Midhun Reddy, who is a member of Lok Sabha from Rajampet constituency, is the accused number four in the case, registered last year after the TDP-led NDA came to power in the state.

The SIT arrested Midhun Reddy on Saturday after questioning him for nearly seven hours at the SIT office here.

His arrest came a day after the Supreme Court dismissed his anticipatory bail petition. Earlier, the Andhra Pradesh High Court had also dismissed his petition.

The MP allegedly played a key role in the excise policy and diverting kickbacks to shell companies.

SIT reportedly found large-scale irregularities and fund misappropriation in the liquor policy implemented during 2019-24.

During the arguments before the judge, senior lawyer Nagarjuna Reddy, who appeared on behalf of Midhun Reddy, opposed the SIT’s plea for his judicial remand.

He told the court that the Lok Sabha Speaker was informed about his arrest. The court was also informed that he served as the MP for three terms and also as a panel Speaker. He enjoys Y category security.

The SIT counsel sought Midhun Reddy’s judicial remand, saying he played a key role in the case. The court was told that there is clear evidence of the MP’s role in the money trail.

The SIT counsel explained the reasons for Midhun Reddy’s arrest. The court was informed that the case has been registered under sections 409, 420 and 120 (B) read with sections 34 and 37 and sections 7, 7A, 8, 13 (1) (B), and 13 (2) of the Prevention of Corruption Act.

Midhun Reddy’s arrest came hours after the SIT filed a preliminary chargesheet in the case. The SIT officials filed the 300-page chargesheet in the ACB court along with forensic lab reports.

The court was informed that Rs 62 crore has been seized in the case so far. The SIT also examined 268 witnesses in the case.

The Crime Investigation Department (CID) initially conducted an investigation into the case last year following a complaint by an official of the Excise Department. Later, the TDP-led NDA government constituted an SIT, headed by NTR District Commissioner of Police SV Rajashekhar Babu, to probe the case.

Investigators reportedly uncovered a kickback network involving nearly Rs 3,500 crore siphoned off over five years.

There are allegations that the YSR Congress Party leaders encouraged a new liquor policy, floated new brands, and received kickbacks from the distillery companies, causing huge losses to the government.

The SIT has already arrested 11 accused in the case. Those arrested in the case include Raj Kesireddy (alias Kesireddy Rajashekar Reddy), advisor to then chief minister Y. S. Jagan Mohan Reddy, K. Dhanunjaya Reddy, a retired IAS officer and former secretary to Jagan Mohan Reddy, Krishna Mohan Reddy, former Officer on Special Duty (OSD), Chevireddy Bhaskar Reddy, former MLA.

–IANS

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