CID to probe into liquor sales during YSRCP government: Naidu

Andhra Pradesh chief minister N Chandrababu Naidu on Wednesday announced that his government would order a thorough investigation by the Crime Investigation Department (CID) into the alleged irregularities in liquor trade in the state during the previous YSR Congress party government.

“After a comprehensive inquiry, we shall even recommend to the Centre for a further probe by the Enforcement Directorate, if necessary,” Naidu said, while presenting a white paper on the excise policy implemented by the previous government.

The chief minister also announced that his government would revamp the excise department and bring in a new excise policy in the coming days.

Explaining the flaws in the excise policy implemented by the YS Jagan Mohan-led government, Naidu said the previous YSRCP government had forgotten its promise on implementation of prohibition of liquor in a phased manner over a period of five years.

“It claimed to have reduced retail liquor outlets from 4,380 to 2,934 initially, but the number went up again to 3,392. The number of bars, too, remained 840,” he said.

He pointed out that the prices of liquor had been increased abnormally over a period of time on the pretext that it would discourage people from consuming liquor, which would ultimately lead to improvement in their quality of life.

“On the contrary, there was an increase in consumption of liquor. The per capita consumption, which was 5.55 litres in 2019-20, went up to 6.23 litres in 2023-24. It also led to illicit liquor distillation and inflow of non-duty paid liquor. Due to abnormally high liquor prices in the state, there was large scale smuggling of liquor from the neighbouring states of Telangana and Karnataka,” he said.

Even though prices of liquor were very high between 2019-24, consumption went up. However, there was no corresponding increase in revenue for the state government. In fact, the government recorded a loss of revenue from liquor to the extent of ₹18,860.51 crore in the last five years.

“This additional revenue was “pocketed” by the YSRCP leaders. The government took over the liquor business. It had stopped procuring popular liquor brands available in other parts of the country and introduced low-quality liquor brands manufactured by the YSRCP leaders, forcing the people to buy them at very high rates,” he said.

The previous government discouraged digital payments at the liquor outlets and forced consumers to do cash transactions to benefit the ruling party leaders, Naidu alleged. “Only in the last quarter of 2023-24, the government allowed digital payments,” he said.

Naidu added that liquor prices will have to be made affordable and there is a need to increase the number of de-addiction centres.