In the Andhra Pradesh liquor policy scam, the Supreme Court on Friday granted regular bail to Muppidi Avinash Reddy, one of the accused in the alleged multi-crore excise irregularities case.

The case pertains to alleged large-scale irregularities in Andhra Pradesh’s excise policy between 2019 and 2024, where investigators claim a structured kickback network siphoned off thousands of crores by favouring select distilleries and manipulating supply orders.

According to probe agencies, Avinash Reddy is alleged to have played a significant role in “generating and transferring kickbacks” and routing illicit funds through shell companies. During the hearing, the prosecution stressed the gravity of the offence and his past conduct, arguing: “This is that ?730 crore matter… this person absconded for a year.”

Investigators have earlier alleged that he evaded arrest and even travelled abroad before being compelled to return. In defence, Senior advocate Sidharth Luthra, however, highlighted compliance with court directions, stating: “He came back pursuant to his commitment… no dispute.” It was also pointed out that he surrendered before authorities on February 26, 2026, following Supreme Court directions, and has since been remanded to judicial custody.

Despite objections, the bench balanced the circumstances, noting that several co-accused had already been granted bail and that continued custody was not warranted at this stage. Allowing the plea to be converted into one for regular bail, the Bench of Chief Justice Surya Kant, Justice Joymalya Bagchi and Justice Vipul M Pancholi ordered his release subject to conditions.

“The applicant is directed to be released on regular bail… subject to such conditions as may be imposed.”

The court clarified that this order is in peculiar circumstances of this case and it cannot be treated as precedent.