Hyderabad: The Andhra Pradesh High Court on Wednesday cancelled the default bail granted to retired IAS officer K. Dhanunjay Reddy, former officer-on-special duty in the Chief Minister’s Office P. Krishna Mohan Reddy, and Balaji Govindappa, director of Bharathi Cements, in the ₹3,500 crore liquor scam allegedly involving the previous YSR Congress Party regime.
The development was confirmed by sources familiar with the matter. The high court bench was headed by Justice Venkata Jyothirmayi, which had reserved its orders on September 26.
Background: Default Bail Granted by ACB Court
The three accused were earlier granted default bail by a special court handling Anti-Corruption Bureau (ACB) cases in Vijayawada on September 6. The bail was granted on the grounds that the Special Investigation Team (SIT) probing the scam had failed to file a complete chargesheet within the statutory time limit.
Challenging this bail, the SIT approached the High Court on September 9, seeking cancellation of the bail orders granted to:
- K. Dhanunjay Reddy (Accused-31)
- P. Krishna Mohan Reddy (Accused-32)
- Balaji Govindappa (Accused-33)
High Court Sets Surrender Deadline
On Wednesday, the High Court set aside the ACB court’s bail order and directed the three accused to surrender before the court on or before November 26, 2025. Initially, Justice Jyothirmayi had mentioned November 24 as the surrender deadline but extended it by two days following a request from the accused.
The court clarified that while the default bail was cancelled, the accused were free to file regular bail applications before the ACB court. The court emphasized that the ACB court must examine such applications on merit and pass appropriate orders after due hearing.
Case Context: ₹3,500 Crore Liquor Scam
The liquor scam, allegedly conducted during the previous YSR Congress Party government, involves irregularities and financial misconduct amounting to ₹3,500 crore. The investigation by the SIT under the supervision of the ACB has focused on tracing the flow of funds and establishing accountability of senior officials and business executives involved.
The high court’s intervention in cancelling default bail highlights judicial oversight in high-profile corruption cases, ensuring that procedural delays do not result in undue benefit for accused persons.
Next Steps
The accused now have a limited timeframe to surrender and may seek regular bail from the ACB court. The court’s directions ensure that proceedings continue in an orderly manner, maintaining the balance between statutory timelines and legal rights of the accused.
