Allied Blenders Shares Take a Hit Amid Andhra SIT's Liquor Scam Probe

Shares of Allied Blenders and Distillers Ltd plunged by 8% on April 15 following reports that the Andhra Pradesh Special Investigation Team (SIT) has frozen the company’s bank accounts. The SIT is investigating an alleged ₹4,000 crore liquor scam linked to the previous YSRCP state government’s regime.  

 

The probe centers around claims that liquor companies paid kickbacks to secure preferential treatment, including exclusive sales of certain brands. The SIT has reportedly directed the State Bank of India to freeze Allied Blenders’ accounts as part of its investigation. The team is expected to file a chargesheet within 4-6 weeks, shedding light on the extent of the alleged irregularities.  

 

This development has added to the company’s woes, with its shares already down 12% over the past six months due to broader risk-off sentiment in Indian equities. Allied Blenders, known for its flagship whisky brand Officer’s Choice, made its stock market debut in July 2024, but recent events have cast a shadow over its performance.  

 

Sources: Moneycontrol, CNBC-TV18, Economic Times