Telugu Desam Party president and Andhra Pradesh Chief Minister N Chandrababu Naidu announced on Wednesday that the Crime Investigation Department (CID) would conduct a comprehensive probe into alleged irregularities in the liquor trade during the tenure of the previous government led by Y S Jagan Mohan Reddy.
Naidu stated that if necessary, the investigation would be extended to the Enforcement Directorate for a more thorough examination of the liquor mafia, following the CID's findings.
He also mentioned that the current government would soon introduce a new excise policy.
Naidu criticized Jagan for failing to fulfill his promise of implementing total prohibition in a phased manner within five years and restricting liquor sales to five-star hotels. Instead, Naidu accused the previous government of fostering a liquor mafia.
"Jagan initially claimed to have reduced the number of retail liquor outlets from 4,380 to 2,934, but the number later increased to 3,392. The number of bars also remained unchanged at 840," he said.
Naidu pointed out that liquor prices had increased by 75 percent over time, purportedly to discourage consumption. However, this price hike led to an increase in liquor consumption.
"The per capita consumption of liquor, which was 5.55 liters in 2019-20, rose to 6.23 liters in 2023-24. This situation also resulted in the proliferation of illicit liquor production and the influx of non-duty-paid liquor. Due to the abnormally high prices in the state, there was widespread smuggling of liquor from neighboring states such as Telangana and Karnataka," Naidu explained.
Despite the high prices and increased consumption, there was no corresponding rise in state revenue from liquor sales. In fact, the state recorded a revenue loss of Rs 18,860.51 crore over the past five years. Naidu alleged that this lost revenue was pocketed by YSRCP leaders.
He further claimed that the previous government had monopolized the liquor business, discontinuing the procurement of popular liquor brands available nationwide and instead promoting low-quality brands manufactured by YSRCP leaders at inflated prices.
Additionally, the government had disallowed digital payments at liquor outlets, forcing consumers to make cash transactions, which Naidu said benefited ruling party leaders.
"Digital payments were only allowed in the last quarter of 2023-24," he added.