Andhra Pradesh is fast becoming known less for its progress and more for its political battles. The state, once focused on welfare and development, is now caught in a bitter war between the ruling Telugu Desam Party (TDP) and the opposition YSR Congress Party (YSRCP). At the heart of the latest clash is a Rs 3,200 crore liquor scam case, with both sides accusing each other of corruption and cover-ups. As investigations drag on and political tensions rise, governance has taken a backseat raising concerns that the state is slipping into a cycle of revenge politics at the cost of its people’s future.The liquor scamThe present TDP-led administration, through the crime investigation department (CID) and special investigation team (SIT), alleged that a Rs 3,200 crore scam was orchestrated during the 2019-2024 tenure of the YSRCP government. At the centre of this accusation is a “kickback-for-preference” scheme involving senior YSRCP leaders, bureaucrats and distillery owners.According to the SIT report and supporting documents, the excise policy under then-chief minister Y.S. Jagan Mohan Reddy was manipulated to suppress national liquor brands and favour lesser-known local brands in return for monthly kickbacks of Rs 50-60 crore. The C-Tel software used for automated liquor procurement was allegedly disabled to enable manual allocation of orders, allowing backroom deals to flourish.The report claims the proceeds were laundered through hawala networks and shell companies, ultimately funneling into political funding and personal gain. The Enforcement Directorate has since initiated a money laundering probe under the Prevention of Money Laundering Act (PMLA). The SIT has named several key figures, including Andhra Pradesh MP P.V. Midhun Reddy, former advisor K. Raja Shekhar Reddy, retired IAS officer K. Dhanunjaya Reddy, Y.S. Jagan’s officer on special duty (OSD) Krishna Mohan Reddy and Bharathi Cements director G. Balaji. Of them, retired IAS officer K. Dhanunjaya Reddy, Y.S. Jagan’s OSD Krishna Mohan Reddy and Bharathi Cements director G. Balaji have been arrested.A ‘counter-blast’ to bury TDP’s past?The YSRCP, currently in opposition, has asserted that the TDP government is weaponising investigative agencies to settle political scores and divert attention from its own past misdeeds. It points to the dormant Crime No. 18 of 2023, which was registered against then-chief minister Chandrababu Naidu and his ministers for their alleged involvement in a liquor mafia during the 2014–2019 period.The previous YSRCP government has insisted that its liquor policy was reform-driven and aimed at curbing rampant alcohol consumption, shutting down illegal belt shops and bringing sales under government control. Official records show a 33% reduction in outlets and increased revenue from Rs 16,912 crore (2018–19) to Rs 24,760 crore (2023–24), despite reduced sales volumes.YSRCP leaders argue that the current FIR (Crime No. 21 of 2024) mirrors the accusations in the 2023 case but simply reverses the political roles. They have claimed that the case is a deliberate “counter-blast” to discredit opposition figures like MP Mithun Reddy – who they insist has no link to the excise department – and to protect TDP leaders from prosecution.Legal tug-of-warThe Andhra Pradesh high court has had to address multiple complaints raising serious concerns about procedural violations and the conduct of the Special Investigation Team (SIT). In a habeas corpus petition filed on April 17 (W.P. No. 10008/2025), a retired police officer – father of one of the accused – was allegedly picked up late at night by unidentified officers in civilian clothes. The high court promptly issued an interim order restraining the SIT from summoning him without court permission and directed that any statement be recorded only at his residence and in the presence of a lawyer.In another petition (W.P. No. 8586/2025), two directors of Sharvani AlcoBrew Pvt. Ltd. alleged that they were coerced into signing blank documents under threat. The high court, acknowledging the gravity of the allegations, ruled that future questioning must take place under the observation of their legal counsel. Similar protection was granted in W.P. No. 10339/2025, where the parents of another accused claimed they were verbally abused and intimidated by the investigating officers.Further concerns were raised in W.P. No. 11620/2025, filed by a woman who alleged she was being harassed by the SIT without any formal notice under Section 179 of the Bharatiya Nyaya Sanhita (BNS). The court granted her protection from further coercive action. These cases have cast a shadow over the legitimacy of the investigation, raising questions about the use of force, procedural fairness and the balance between law enforcement and individual rights.While the SIT has denied any wrongdoing and claims all actions are being carried out in accordance with the law, legal experts and civil society observers have cautioned that the number of judicial interventions reflects deeper issues in the investigative approach. With multiple cases now under court supervision, the liquor scam investigation is increasingly being seen not just as a corruption probe but as a test case for the limits of state power in politically sensitive investigations.What’s really at stake?While most headlines are dominated by arrests, court battles and political mudslinging, the deeper concern emerging from the Andhra Pradesh ‘liquor scam’ saga is the growing erosion of public trust in institutions, governance and the rule of law. What was once a matter of state policy – meant to regulate alcohol sales, generate revenue and protect public health – has now been reduced to a political battleground where each party weaponises allegations to settle scores. This politicisation has far-reaching consequences. For one, the credibility of enforcement agencies and the fairness of due process are being questioned, especially with repeated judicial interventions pointing to procedural lapses. More importantly, ordinary citizens are left bearing the brunt. Consumers face shrinking choices and questionable liquor quality as the focus shifts from regulation to retaliation. Industry insiders point out that frequent disruptions and policy uncertainty have unsettled suppliers, distilleries and small businesses reliant on the excise chain. Honest officers, too, find themselves in precarious positions – torn between political loyalty and administrative duty – further weakening bureaucratic morale. Civil society groups warn that such prolonged instability can affect investor confidence, stall economic activity and ultimately hurt the state’s long-term development goals. As Andhra Pradesh’s political leadership engages in a tit-for-tat battle over past regimes, the real casualty may be good governance itself.Medabayani Balakrishna is a senior journalist.