Hyderabad: The Enforcement Directorate (ED) has questioned retired IAS officer Rajat Bhargava in connection with the alleged ₹3,500-crore liquor scam in Andhra Pradesh, bringing renewed attention to the decisions taken by the state’s Excise Department during the previous YSR Congress Party (YSRCP) government.
Bhargava appeared before ED officials in Hyderabad on Wednesday, October 14, according to media reports. He reportedly told investigators that officials associated with the then Chief Minister’s Office intervened when he raised objections to decisions concerning liquor prices, procurement and supply orders.
The ED is investigating alleged financial irregularities in Andhra Pradesh’s liquor procurement and distribution system between 2019 and 2024. Investigators are examining suspected kickbacks, the movement of money and possible money laundering linked to the alleged irregularities.
Who Is Rajat Bhargava?
Rajat Bhargava is a retired 1990-batch IAS officer of the Andhra Pradesh cadre. He holds a graduate degree in Physics, a postgraduate degree in Geology, and a Ph.D. in Geology from Andhra University.
He served as Special Chief Secretary in the state’s Revenue and Excise Department and was associated with the Andhra Pradesh State Beverages Corporation Limited (APSBCL) during the period under investigation.
Bhargava held the Excise Department position from May 2020 to June 2024. His tenure covered a substantial part of the period in which investigators allege that irregularities occurred in liquor procurement, pricing and distribution.
What Did Bhargava Tell the ED?
According to reporting by The Times of India, Bhargava told ED investigators that officials associated with the former Chief Minister’s Office intervened when he objected to decisions involving liquor pricing and procurement.
He reportedly named former Chief Minister’s Office officials K. Dhanunjaya Reddy and P. Krishna Mohan Reddy, along with Kesireddy Raj Reddy, who is an accused in the wider case.
According to the reported account, Bhargava alleged that repeated increases in liquor base prices benefited selected suppliers and distilleries. He also reportedly said that objections he raised through official communications were not acted upon. These claims form part of the statements attributed to him in media reports and have not been established as judicial findings.
The reports also indicate that Bhargava said he had recommended increasing the additional retail excise duty to improve revenue for the state. Instead, he alleged, decisions were taken that raised base prices and benefited certain suppliers.
The allegations concerning the roles of the named individuals remain subject to the ongoing investigation and judicial process.
Bhargava Had Earlier Been Questioned by the SIT
The ED questioning follows an earlier round of questioning by the Andhra Pradesh Crime Investigation Department’s Special Investigation Team (SIT).
On September 29, the SIT questioned Bhargava in Vijayawada regarding the formulation and implementation of the state’s liquor policy. Investigators reportedly sought details about the approval of liquor brands, the process for issuing sale orders, procurement decisions and the alleged involvement of private individuals in Excise Department affairs.
The SIT also reportedly asked what steps Bhargava had taken to address the alleged irregularities during his tenure.
Bhargava was reported to have said that he had raised concerns with the government. His subsequent statements to investigators have drawn attention to the decision-making process within the department and the alleged role of senior officials.
Why Is the Andhra Pradesh Liquor Case Under Investigation?
The investigation concerns alleged irregularities in liquor procurement and distribution during the 2019–2024 tenure of the previous YSRCP government.
Investigators are examining whether decisions involving liquor prices, brand selection, supplier allocations and procurement procedures were manipulated to generate unlawful financial benefits.
The alleged scam has been estimated at approximately ₹3,500 crore, with investigators examining the suspected loss to the state exchequer and the alleged movement of proceeds through financial channels. The figure relates to the allegations under investigation; it should not be treated as a final judicial determination of loss or liability.
The investigation has included scrutiny of several former officials and other individuals. The ED is examining the possible money-laundering dimension, while the state’s SIT has investigated the underlying policy, procurement and distribution-related allegations.
Key Issues Being Examined
- Liquor pricing: Alleged manipulation of base prices and the resulting financial benefits to selected suppliers.
- Procurement and brand selection: Alleged irregularities in supplier allocations and the approval of liquor brands.
- Sale orders: Questions surrounding the process used to issue orders for the sale and supply of liquor.
- Financial transactions: Suspected kickbacks and the possible movement of proceeds through channels under investigation.
- Administrative decisions: The role of officials and the handling of objections raised within the Excise Department.
What Happens Next?
The ED’s questioning of Bhargava is part of the continuing investigation into the alleged liquor scam. Investigators are seeking to establish how the disputed decisions were made, who may have benefited financially and whether the evidence supports further action.
Bhargava’s reported statements may form part of the material examined by investigators, alongside documentary records, financial transactions and statements from other individuals.
The allegations against Bhargava and the other individuals named in reports must be distinguished from proven wrongdoing. Questioning by an investigating agency does not, by itself, establish guilt. The outcome will depend on the evidence gathered and the findings of the competent authorities and courts.
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