The Supreme Court on Wednesday shielded three accused in the alleged ₹3,500 crore Andhra Pradesh liquor scam from being forced to surrender, putting on hold a High Court order that had cancelled their default bail.
A bench led by Chief Justice of India Surya Kant, with Justice Joymalya Bagchi, stayed the Andhra Pradesh High Court’s direction that required the accused — Balaji Govindappa, Pellakuru Krishna Mohan Reddy, and K. Dhanunjaya Reddy — to surrender before the trial court on November 26 and seek regular bail.
The top court issued notices to the Andhra Pradesh government and others, seeking their response within ten days. Until then, the three petitioners will not be required to surrender, subject to the conditions earlier imposed by the trial court.
While hearing the petitions, the bench observed that the sheer volume of witnesses raised practical concerns about prolonged incarceration.
“There are 400 witnesses and eventually the number may become 200. Even if we assume 100 witnesses, then how long will you take?” the CJI asked.
He added that many default bail pleas become infructuous once courts start examining regular bail, especially when liberty can be granted without compromising the fairness of the trial.
Senior advocate Siddharth Luthra, representing the state, said the trial court had initially rejected the chargesheet, but it had since been restored. “We will try to expedite the trial,” he told the bench.
The CJI, however, pushed back against theoretical arguments:
“We don’t want to get into any academic discussions, which is a waste of court time. You have to tell us what purpose will be achieved by keeping them in custody. We know one of them was a senior officer, and if you think there is a chance of influencing the witnesses, we can put some conditions.”
- K. Dhanunjaya Reddy, retired IAS officer and former Secretary in the Chief Minister’s Office.
- Pellakuru Krishna Mohan Reddy, former OSD to then CM Y.S. Jagan Mohan Reddy.
- Balaji Govindappa, former director of Bharati Cements.
Senior advocates C.A. Sundaram, Mukul Rohatgi and Siddharth Dave appeared for the petitioners.
According to the prosecution, the alleged scam involved a political-business nexus during the previous YSRCP government between 2019 and 2024. Investigators claim:
- New liquor brands were favoured through manipulated procurement processes.
- Popular brands were suppressed to boost artificially created demand.
- Kickbacks were routed systematically through business entities and political channels.
- Influential officials allegedly played key roles in facilitating the scheme.
The investigation is ongoing, and chargesheets have been filed in phases.
The Supreme Court will take up the matter after receiving the state’s affidavit. Till then, the interim protection granted on Wednesday ensures the accused will remain out of custody, while the challenge to the cancellation of their default bail remains under consideration.
