Andhra Pradesh Liquor Scam Case: Supreme Court Grants Regular Bail To Avinash Reddy Using Article 142 Powers

The Supreme Court on Friday (March 20, 2026) granted regular bail to Muppidi Avinash Reddy, an accused in the alleged multi-crore Andhra Pradesh liquor scam, invoking its plenary powers under Article 142 of the Constitution.A Bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice Vipul M. Pancholi granted relief to Reddy, who was represented by Senior Advocate Siddharth Dave. Senior Advocate Siddharth Luthra appeared for the State of Andhra Pradesh.The Court converted the appellant's plea for anticipatory bail into one for regular bail and directed that he be released on bail during the pendency of the trial, subject to furnishing bail bonds to the satisfaction of the trial court. It left it to the discretion of the trial court to impose stringent conditions, as deemed appropriate.The appellant had challenged the Andhra Pradesh High Court's order dated January 29, 2026 refusing anticipatory bail in connection with FIR No. 21/2024 registered at the CID Police Station, Mangalagiri, for offences under Sections 409, 420 and 120B read with Sections 34 and 37 of the Indian Penal Code, as well as provisions of the Prevention of Corruption Act, 1988.The Supreme Court noted that during an earlier hearing on February 24, 2026, it had declined interim protection from arrest and directed Reddy to return to India and surrender before the Investigating Officer. In compliance with that direction, he returned to India and surrendered on February 26, 2026. He was subsequently remanded to judicial custody and subjected to custodial interrogation after the police obtained permission for the same.Taking into account the appellant's compliance with the Court's directions, his willingness to abide by the law, and the fact that some co-accused had already been granted bail, the Bench held that the case warranted exercise of its powers under Article 142 to grant regular bail, without expressing any opinion on the merits of the allegations.The Court clarified that the relief was granted in the peculiar facts and circumstances of the case and that the order should not be treated as a binding precedent for grant of bail in other matters.The allegations in the case relate to large-scale irregularities in the implementation of the excise policy and the functioning of the Andhra Pradesh State Beverages Corporation Limited between 2019 and 2024. Investigators allege that the accused manipulated the allocation of supply orders, gave preferential treatment to certain brands, and generated and transferred kickbacks as part of an organised syndicate, causing an estimated loss of about ₹3,500 crore to the State exchequer.Case : MUPPIDI AVINASH REDDY v. STATE OF ANDHRA PRADESHCitation : 2026 LiveLaw (SC) 274Click here to read the order

Andhra Pradesh Liquor Scam Case: Supreme Court Grants Regular Bail To Avinash Reddy Using Article 142 Powers

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Invoking Art 142, the Court converted his plea for anticipatory bail into one for regular bail.

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