Spirit Under Scrutiny: Tilaknagar Industries Caught in Crosshairs of Andhra Liquor Scam Probe

Shares of Tilaknagar Industries (TILK.NS) are in the limelight after it was stated that Andhra Pradesh Police have submitted a chargesheet against the company in a suspected ₹3,500 crore liquor scam. Interestingly, the company has stated that it has not received any notice from the authorities regarding the matter.

 

Key Highlights

 

Serious Charges, No Direct Notification:

Unlike news reports that the Andhra Pradesh Special Investigation Team (SIT) had filed the chargesheet, Tilaknagar Industries asserts that it has not been notified by law enforcement agencies or the regulatory bodies of the charges.

 

Alleged ₹218 Crore Kickbacks:

Police allege that between 2019 and 2024, Tilaknagar Industries made an estimated ₹218 crore in kickbacks to syndicate handlers in exchange for state supply contracts, converting a portion of its ₹1,472 crore Andhra sales proceeds into untraceable funds in the form of gold purchases.

 

No Official Charge Yet:

The chargesheet, presented in Vijayawada, reportedly does not name TIL as a suspect but talks about suspect transactions of the company with respect to Andhra Pradesh State Beverages Corporation.

 

Company's Position:

Tilaknagar Industries, in a BSE filing, pointed to its commitment to ethical practices and urged stakeholders to listen only to formal statements of the company or exchanges. The company has said nothing outside its formal press release.

 

Political Viewpoint:

His case was rejected by former Chief Minister and YSRCP chairman Jagan Mohan Reddy as politically motivated and stated the charges were made up for publicity. Market Response: The shares of the company were volatile, rising first before falling, as the events left investors in doubt. 

 

Source: The Week, Reuters, Devdiscourse, CNBC-TV18, BusinessUpturn.