New Delhi [India], August 24 (ANI): The Enforcement Directorate (ED) has arrested Karumuri Venkata Nageswara Rao, former Minister for Civil Supplies and former MLA of Andhra Pradesh, for acting as a key facilitator in the alleged Andhra Pradesh State Beverages Corporation Ltd (APSBCL) liquor transportation scam, the agency said on Monday.
Rao was arrested under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) on August 23 and was produced before the special court under PMLA, Nampally, Hyderabad. The court has remanded him to 15 days’ judicial custody.
ED’s Hyderabad zonal office arrested Rao following its investigation based on First Information Report (FIR) registered by CID, Andhra Pradesh under various Sections of Indian Penal Code, 1860 and the Bharatiya Nyaya Sanhita (BNS), 2023 based on complaint of Additional Secretary to Government of Andhra Pradesh (Vigilance), for loss to the Government exchequer to the tune of Rs 195.33 crore, APSBCL Liquor Transportation Scam.
Investigation revealed that the liquor transport tender conditions of APSBCL were deliberately modified and tailored in favour of selected entities, namely Sigma Supply Chain Solutions Pvt Ltd (SSCSPL) and subsequently Prasaad Transports, which acted merely as front entities while the actual operational and financial control remained with persons associated with Kesireddy Rajashekhar Reddy, Donthireddy Vasudeva Reddy and their associates.
ED investigation further revealed that the liquor cartel devised a mechanism to generate unlawful gains through the transportation of liquor from depots to retail outlets in the State of Andhra Pradesh.
As per the agency, Kesireddy Rajashekhar Reddy, Tukekula Eswar Kiran Kumar Reddy and Anjani Kumar, in active connivance with Donthireddy Vasudeva Reddy, the then Managing Director of APSBCL, abused their influence to secure liquor transportation tender at rates substantially higher than the prevailing rates, thereby generating proceeds of crime.
“The investigation revealed that SSCSPL was used as a front entity to participate in the tender process and to obtain the contract through a manipulated tender process. However, the actual execution and operational control of the transportation work was carried out by Tukekula Eswar Kiran Kumar Reddy alias Kiran Kumar and his associates, who functioned under the direct supervision and control of Kesireddy Rajashekhar Reddy alias Raj,” said the federal agency.
ED Investigation has revealed that “Karumuri Venkata Nageswara Rao, along with his son Karumuri Sunil Kumar, by leveraging their political influence and close association with members of the liquor transportation syndicate, particularly Kesireddy Rajashekhar Reddy, Tukekula Eswar Kiran Kumar Reddy and Donthireddy Vasudeva Reddy, they exercised substantial control over the allotment of liquor transportation sub-contracts and derived significant illicit financial gains therefrom.”
ED investigation further revealed that “Karumuri Venkata Nageswara Rao and his son Karumuri Sunil Kumar arranged Sree Sudarsana Constructions as a dummy sub-contractor of SSCSPL for transportation of liquor, whereas the actual transportation was carried out by other entities and persons arranged by Karumuri Venkata Nageswara Rao and his son Karumuri Sunil Kumar.”
“It has emerged that inflated invoices were raised by Sree Sudarsana Constructions on SSCSPL to facilitate diversion of funds to its bank accounts. The funds received were transferred to the personal bank accounts of Karumuri Venkata Nageswara Rao and his family members,” it said.
Further, the agency mentioned that a substantial portion of the transport proceeds was utilised by Sree Sudarsana Constructions and its related persons towards personal expenses incurred on behalf of Karumuri Venkata Nageswara Rao and his family members.
ED investigation has further established that the proceedings of crime acquired were utilized by Karumuri Venkata Nageswara Rao and Karumuri Sunil Kumar for acquisition of luxury assets, including high-end motor vehicles and luxury watches, payment of advances towards purchase of immovable properties, political funding, and meeting various personal and family-related expenditures through direct banking transfers and cash transactions, thereby projected the utilisation of proceeds of crime as genuine business income.
Earlier, ED arrested Kesireddy Rajashekhar Reddy and Donthireddy Vasudeva Reddy on June 11 and Karumuri Sunil Kumar, son of Karumuri Venkata Nageswara Rao, on June 18, 2026, under the provisions of PMLA, 2002. All three accused were arrested earlier and are presently in judicial custody.
Further, the ED said a provisional attachment order for attachment of properties worth Rs 37.79 crore was issued on August 6, and the first prosecution complaint was filed before the special court on August 7 against the three arrested persons and others. (ANI)
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