India, May 17 -- The Special Investigation Team (SIT) of the Andhra Pradesh police probing the Rs.3,200 crore liquor scam that allegedly took place during the previous YSR Congress party government on Friday arrested retired IAS officer K Dhanunjaya Reddy and another retired official P Krishna Mohan Reddy, both accused in the case, people familiar with the matter said.

The arrest of the two accused took place within hours of the Supreme Court dismissing their petitions seeking anticipatory bail in the alleged liquor scam. While Dhanunjaya Reddy was secretary in the chief minister's office (CMO), Krishna Mohan Reddy was the officer on special duty (OSD) to former chief minister Y S Jagan Mohan Reddy.

According to a senior police official...