Liquor Scam Main Accused Used Film Production To Convert Black Money To White

The Andhra Pradesh Crime Investigation Department's (CID) Special Investigation Team (SIT) has unearthed a significant scandal, exposing a deep-seated connection between individuals associated with YSRCP leaders and the Tollywood film industry. This probe into the alleged Liquor Scam reveals how a film production company, ED Entertainments, founded by prime accused Kesireddy Rajasekhar Reddy, also known as Raj Kesireddy, was allegedly used to launder black money.

Raj Kesireddy, who previously served as an IT advisor to former Chief Minister Y.S. Jaganmohan Reddy, had his arrest in the purported Rs 3,200 crore Liquor Scam upheld by the Supreme Court on May 23. The SIT is meticulously investigating the illicit financial activities tied to liquor sales during the previous government's administration in the state, bringing to light a sophisticated scheme to convert illicit funds into legitimate assets through film investments.

The investigation by the SIT detailed how ED Entertainments produced two Telugu feature films, "Malli Modalaindi" starring Sumanth and "Spy" with Nikhil Siddharth, between 2020 and 2023. While the company officially declared a production cost of only Rs 12 crore, stating these as borrowed funds, the SIT discovered an additional Rs 28 crore was spent in cash, pushing the actual expenditure to Rs 40 crore.

The black money, allegedly accumulated from liquor distilleries and supply companies, was reportedly routed to a group of individuals who then deposited these funds into the production firm's bank accounts as loans. A glaring example includes a Rs 1 crore transfer to ED Entertainments that was never repaid, highlighting the fraudulent nature of these transactions.