The Special Investigation Team (SIT) probing the alleged Rs 3,500-crore liquor scam that took place during the previous YSR Congress Party (YSRCP) regime has uncovered a new dimension to the case — the use of engineering graduates and unemployed youth to transport and store illicit money generated through liquor sales and distillery commissions.

The revelation came to light during the interrogation of 34-year-old Katta Pranay Prakash, an engineering graduate from Hyderabad, who is believed to be one of the key operatives in the scam, according to the report by The New Indian Express.

According to sources, more than 200 youth, mostly engineering graduates and unemployed individuals with links to YSRCP leaders, were recruited between 2019 and 2024 and lured with lucrative incentives.

Pranay reportedly told investigators that he was introduced to the scam’s alleged kingpin, Kesireddy Rajashekar Reddy alias Raj Kesireddy, and his personal assistant, B Chanakya, through an acquaintance named Kiran Kumar Reddy.

Shortly after the liquor policy was revised in 2019, Pranay was asked to rent a house in Tadepalli for operational ease. He later took an apartment in Landmark Apartments, where he stored large sums of cash in carton boxes.

“Initially unaware of the larger plot, Pranay was gradually taken into confidence and was promised a key role if the YSRCP returned to power,” an SIT official said on condition of anonymity.

As the heat mounted and the Crime Investigation Department (CID) registered an First Information Report (FIR) in connection with irregularities in the liquor policy, Pranay was reportedly sent to Dubai to avoid scrutiny — a move the SIT claims was also adopted for others deeply involved.

The SIT has learned that many of the recruited youth were unaware of the actual nature of their work. Chanakya allegedly oversaw their recruitment and assignments. Once their roles were completed, they were cut off from the core group and even offered jobs in Hyderabad and elsewhere to ensure silence.

Pranay further revealed that he, along with Raj Kesireddy, former Chandragiri Member of Legislative Assembly (MLA) Chevireddy Bhaskar, his son Mohit Reddy, and others, held meetings in Dubai and Tanzania about establishing factories in South Africa using proceeds from the scam.

Police are also investigating Chevireddy’s recent plans to travel to Colombo, suspecting it to be a potential exit route or a safe zone. Efforts are under way to take him into custody for further questioning.