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Supreme Court Grants Regular Bail to Muppidi Avinash Reddy in Andhra Pradesh Liquor Scam

LAW FINDER NEWS NETWORK | March 23, 2026 at 4:53 PM
Supreme Court Grants Regular Bail to Muppidi Avinash Reddy in Andhra Pradesh Liquor Scam

Invoking Article 142, the Apex Court moulds relief from anticipatory to regular bail, emphasizing unique circumstances and compliance with directives.


In a significant development, the Supreme Court of India has granted regular bail to Muppidi Avinash Reddy, a key figure in the high-profile Andhra Pradesh Liquor Scam. The decision, delivered on March 20, 2026, comes after the Andhra Pradesh High Court previously denied anticipatory bail to Reddy. The Apex Court invoked Article 142 of the Constitution to extend this relief, considering the unique circumstances surrounding the case.


The case revolves around substantial irregularities in the implementation of the excise policy and operations of the Andhra Pradesh State Beverages Corporation Limited from 2019 to 2024, which have collectively been termed as the "Andhra Pradesh Liquor Scam." The allegations against Avinash Reddy, who is the brother of a co-accused, include generating and transferring kickbacks and other criminal proceeds. Prior to his arrest, Reddy reportedly fled the country but maintained regular contact with the Investigating Officer (IO). A Look Out Circular was subsequently issued against him, complicating his return to India.


On February 24, 2026, the Supreme Court declined interim protection against arrest for Reddy, directing him instead to surrender to the IO in India. Complying with this directive, Reddy returned and surrendered on February 26, 2026. Following his surrender, he was remanded to judicial custody and subsequently subjected to custodial interrogation.


The Supreme Court's decision to grant regular bail was influenced by several factors, including Reddy's compliance with the interim order and his willingness to abide by all legal conditions imposed. The Court emphasized that this decision is tailored specifically to the peculiar facts of this case and should not be seen as a precedent for other bail applications.


The bail granted is contingent upon Reddy furnishing bail bonds to the satisfaction of the Trial Court, which retains the discretion to impose stringent conditions as deemed necessary.


This ruling highlights the Supreme Court's discretionary power under Article 142 to mould relief in cases where the facts and circumstances warrant such intervention. It underscores the Court's careful consideration of compliance and cooperation with the judicial process while balancing the rights of the accused with the needs of justice.


Bottom Line:

Anticipatory bail petition rejected by High Court - Supreme Court invoked Article 142 of the Constitution to grant regular bail to the appellant, taking into account compliance with the interim direction, willingness to abide by the law, and peculiar facts of the case.


Statutory provision(s): Article 142 of the Constitution of India, Sections 438 and 439 of the Criminal Procedure Code, 1973, Sections 409, 420, 120B, 34, and 37 of the Indian Penal Code, Sections 7, 7A, 8, 13(1)(b), and 13(2) of the Prevention of Corruption Act, 1988.


Muppidi Avinash Reddy v. State of Andhra Pradesh, (SC) : Law Finder Doc id # 2869997

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