On Wednesday, the high court of Andhra Pradesh annulled the default bail that had been granted to retired IAS officer K Dhanunjay Reddy, former officer-on-special duty in the chief minister’s office P Krishna Mohan Reddy, and Bharathi Cements director Balaji Govindappa in connection with the ₹3,500 crore liquor scam that reportedly occurred during the previous regime of the YSR Congress party, as per sources familiar with the situation on Thursday.

The three individuals were initially granted default bail by a special court for anti-corruption bureau (ACB) cases in Vijayawada on September 6, based on the premise that the special investigation team (SIT) investigating the matter had not submitted a complete chargesheet within the required timeframe.

In response to that ruling, the SIT filed an appeal with the high court on September 9, requesting the cancellation of bail for Dhanunjaya Reddy (Accused-31), Krishnamohan Reddy (A-32), and Bharathi Cements Director Balaji Govindappa (A-33).

After considering the arguments presented, a bench of the high court led by Justice Venkata Jyothirmayi reserved its decision on September 26 and delivered the judgment on Wednesday, overturning the ACB court’s bail order and instructing the three accused to surrender to the ACB court by November 26.

Initially, the judge set the deadline for November 24, but extended it by an additional two days at the request of senior defense counsel.

While the high court partially granted the SIT’s petitions, it also made it clear that the accused are permitted to submit regular bail applications to the ACB court, which is required to review them based on their merits and issue appropriate orders following a proper hearing.