Hyderabad: What began as a probe into liquor deals in Andhra Pradesh has unfolded into a far deeper and more sophisticated network — one that allegedly blended shell firms, covert recruitment and multi-layered money laundering to move thousands of crores while shielding its core operators.The Enforcement Directorate‘s attachment order paints a picture of a syndicate that went well beyond distillery kickbacks. It alleges that young graduates, including personnel from premier institutions such as IITs, were lured with promises of ‘white-collar jobs’ in companies floated by the network, only to be used as ‘collection agents’ or ‘mules’ to move illicit cash and make deceptive VoIP calls, creating distance between the operation and its leadership. At the heart of the case is the alleged dismantling of a transparent liquor procurement system and its replacement with a discretionary manual process. Investigators claim this allowed the syndicate to favour select suppliers, sideline established brands and extract illegal kickbacks. The probe estimates that around 3,500 crore was siphoned off through shell companies and routed into political funding, personal assets and laundering channels. The attachment order says the network planned a private chain of operatives to collect kickbacks while maintaining plausible deniability. Recruits were allegedly tasked with transporting cash and avoiding traceable digital footprints.Luxury buys, real estateThe ED alleges that kickbacks were converted into gold, luxury goods and property. Funds were routed through bullion traders, including Mohanlal Jewellers and Rao Saheb Boorugu Mahadev Jewellers, to purchase gold coins and bullion. Distilleries allegedly obtained GST invoices for such purchases to give them a veneer of legitimacy before handing over the assets. Luxury garments were also reportedly bought under the guise of promotional expenditure. In real estate, ‘Wilderness Ranch’ is cited as a key project. The order alleges that Raj Reddy, described as the syndicate’s ‘principal kingpin’, used a network of shell companies, to channel funds into such ventures. The order details alternative modes of kickbacks when cash movement became difficult. In one instance, distillery owner Shailender Singh Bagga allegedly procured multi-brand mobiles worth 13.7 crore for the cartel. In another, a jeweller reportedly delivered around 310 gold coins in multiple tranches to a syndicate member. It also alleges that vehicles belonging to the Tirupati Urban Development Authority were used to transport cash from Hyderabad to locations such as Tirupati and Kavali ahead of the 2024 elections, with logbooks falsified to mask movement. The ED has linked a 8.36 crore seizure days before the polls to this network.
