The Andhra Pradesh Crime Investigation Department (AP CID) has named, among others, SPY Agro Industries Ltd., PMK Distilleries and Visakha Distilleries as accused in the alleged liquor scam.
The CID filed an FIR in the case recently, in which it listed former Chief Minister N. Chandrababu Naidu as A-3. It also named former Minister Kollu Ravindra as A-2 in the case.
The CID alleged that the government headed by Mr. Naidu had taken a decision to favour SPY Agro Industries by violating certain rules.
“The SPY Agro Industries Ltd., Nandyal, was provided with the benefit of extension of validity of Letter of Intent (LoI) for establishment of a manufactory. The company was granted the benefit of instalments for payment of Licence Fee as applicable to the case though the High Court had directed in PIL No. 102/2015 that the company was obligated to pay the enhanced fee amended in 2011 and not as on the date LOI had been granted. The Court had also specifically found that SPY Agro Industries Ltd. cannot be allowed to take advantage of its own wrong and cause huge loss to the public exchequer,” the CID alleged in its report.
The CID further observed that “notwithstanding the said directions, further benefit of payment of instalments was granted, interest on the arrears in licence fee was allowed to be collected only with effect from November 27, 2015 (the date of judgment on PIL No. 102/2015), contrary to the findings of the judgment.”
The CID further alleged that “the interest payable for the period prior thereto, on the arrears of licence fee, was relaxed, by recourse to Section 65 of AP Excise Act, 1968, read with Rule 3 of the 1982 Rules, which do not apply to the facts of the case.”
According to the CID, the financial loss caused to the government and corresponding pecuniary gain to the company on account of enforcement of interest only from November 27, 2015, and not from the earlier date of accrual dues, is approximately ₹15 crore.
The CID said that a detailed investigation was necessary, including into the possibility of quid pro quo, having regard to the fact that the promoter, S.P.Y. Reddy, is a politician and MP from Nandyal at the relevant point in time.
As per the FIR, “contrary to the recommendations of the committee constituted under G.O. Rt. No. 993, Revenue (Excise 2) Department dated November 12, 2014, permission was granted for establishment of distilleries beyond the recommended capacity. As per the rules governing the committee, the government is bound by the recommendations of the committee, and without reference to any further justification, factual or legal, such decision was taken, in a departure from rules, to benefit the private distilleries, including PMK Distilleries, Visakha Distilleries and three others.”
