Lisbon, Portugal – Actor Allu Sirish recently expressed heartfelt gratitude towards his late father-in-law, D. Sharat Chandra Reddy, acknowledging the positive influence he had on his wife. The actor’s message, shared publicly, has sparked renewed interest in Reddy’s background, particularly given his involvement in a high-profile political and financial controversy in India.
“To my late father-in-law D. Sharat Chandra Reddy garu – I didn’t have the fortune of meeting you directly. However, I thank you for raising the beautiful woman who is my wife today. The love you showered upon her, I will carry forward for the rest of my life on this earth,” Sirish wrote, according to reports circulating online. The sentiment, while deeply personal, comes at a time when Reddy’s name is frequently mentioned in connection with investigations into alleged irregularities surrounding Delhi’s excise policy and subsequent financial dealings.
From Businessman to Approver: The Sharat Chandra Reddy Case
Sharat Chandra Reddy, a businessman based in Delhi, became a central figure in the investigation into the Delhi liquor policy scam, officially known as the Delhi Excise Policy 2021-22. The policy, aimed at modernizing the city’s liquor sales, was quickly embroiled in allegations of corruption and undue influence. Reddy was first questioned by the Enforcement Directorate (ED) on November 9, 2022, regarding his alleged links to the scandal. Initially, he maintained that he had no contact with or knowledge of Arvind Kejriwal, the Chief Minister of Delhi, or the Aam Aadmi Party (AAP). However, his testimony dramatically shifted following months of detention.
According to reports, after several months in jail, Reddy altered his statement to include admissions of meetings and discussions with Kejriwal concerning the excise policy. This change in testimony reportedly led to his release on bail. The timing of this shift has raised questions, particularly in light of subsequent revelations regarding Reddy’s financial contributions to the Bharatiya Janata Party (BJP).
Financial Links to the BJP and Electoral Bonds
Further scrutiny of Reddy’s financial transactions revealed his involvement in the electoral bond scheme, a controversial system allowing anonymous donations to political parties. Reports indicate that Reddy contributed 55 crore rupees (approximately $6.6 million USD as of March 9, 2026) to the BJP through electoral bonds following his arrest by the ED. Asianet News reported that the Aam Aadmi Party (AAP) has alleged a quid pro quo arrangement, suggesting that the financial contributions secured favorable treatment from the ED.
The AAP alleges that Reddy’s initial denial of any connection to Kejriwal was followed by a swift arrest, and that his subsequent change of testimony – admitting to meetings with the Chief Minister – coincided with the substantial donations to the BJP. The party claims this demonstrates a pattern of the ED being used as a tool to pressure individuals into supporting the ruling party. These allegations are currently being investigated.
The Delhi Excise Policy and Allegations of Corruption
The Delhi Excise Policy 2021-22 aimed to revamp the city’s liquor retail system, transitioning from government-run stores to private establishments. The policy included provisions for allowing private vendors to operate stores, offering discounts, and extending operating hours. However, the implementation of the policy was quickly met with criticism and allegations of corruption.
The central allegations revolve around claims that private liquor vendors received undue favors in exchange for kickbacks to government officials and AAP leaders. The ED and the Central Bureau of Investigation (CBI) launched investigations into the alleged irregularities, leading to the arrest of several individuals, including Deputy Chief Minister Manish Sisodia. Sisodia, a key figure in the AAP government, was arrested in February 2023 and remains in custody as of March 9, 2026, facing charges related to the scam. Marunadan Malayalee details the initial stages of the ED’s investigation and Reddy’s initial denial of involvement.
Reddy’s Evolving Testimony
The case against Reddy initially centered on allegations that he was a key intermediary in the alleged exchange of funds between liquor vendors and AAP officials. His initial statement to the ED explicitly denied any association with Kejriwal or the AAP. However, after months in custody, his testimony underwent a significant change. He reportedly admitted to meeting Kejriwal and discussing the excise policy, a development that led to his release on bail. This shift in testimony has been heavily scrutinized, with critics questioning its credibility and suggesting it was coerced.
According to British Malayali, Reddy transitioned from being a suspect to an “approver” in the case, meaning he is now cooperating with the investigation in exchange for potential leniency. This change in status further fueled allegations of political maneuvering and a biased investigation.
Implications and Ongoing Investigations
The Sharat Chandra Reddy case has become a focal point in the ongoing political battle between the BJP and the AAP. The AAP alleges that the investigations are politically motivated and aimed at undermining the party’s leadership. The BJP, maintains that the investigations are being conducted impartially and that the law will take its course.
The case has too raised concerns about the transparency and accountability of the electoral bond scheme. Critics argue that the anonymity afforded by the scheme allows for quid pro quo arrangements and undermines the integrity of the electoral process. The Supreme Court of India is currently hearing petitions challenging the constitutionality of the electoral bond scheme, and a ruling is expected in the coming months.
The ED’s investigation into the Delhi excise policy scam is ongoing, with further arrests and investigations expected. The case is likely to have significant implications for the political landscape in Delhi and could potentially impact the upcoming general elections in India.
Key Takeaways:
- Sharat Chandra Reddy, a businessman, is a key figure in the Delhi liquor policy scam investigation.
- Reddy initially denied any connection to Arvind Kejriwal and the AAP but later changed his testimony after being arrested.
- He allegedly donated 55 crore rupees to the BJP through electoral bonds following his arrest.
- The AAP alleges a quid pro quo arrangement between Reddy and the BJP.
- The case has raised concerns about the transparency of the electoral bond scheme and the impartiality of the investigation.
As the investigation continues and further details emerge, the case of Sharat Chandra Reddy remains a complex and politically charged issue. The next steps in the investigation, including potential court proceedings and the Supreme Court’s ruling on the electoral bond scheme, will be closely watched.
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