ED Arrests Former MLA in Major Liquor Transport Scam

Hyderabad, August 24: The Enforcement Directorate (ED) has made a significant move in the high-profile liquor transport scam in Andhra Pradesh by arresting former Civil Supplies Minister and ex-MLA Karumuri Venkata Nageswara Rao. The arrest took place on August 23 under the Prevention of Money Laundering Act (PMLA) of 2002. He was presented in a special PMLA court in Nampally, Hyderabad, on August 24, where he was remanded to judicial custody for 15 days.

The ED initiated this investigation based on a complaint from the additional secretary (vigilance) of the Andhra Pradesh government, which led to an FIR filed by the CID under various sections of the IPC and BNS. This case is linked to a loss of ₹195.33 crores to the state exchequer due to the APSBCL liquor transport scam.

The investigation revealed that the terms of the liquor transport tenders by the Andhra Pradesh State Beverages Corporation Limited (APSBCL) were deliberately altered to benefit select companies. These companies included Messrs Sigma Supply Chain Solutions Private Limited (SSCSPL) and later Messrs Prasad Transports. According to the ED, these firms were merely front companies, while the actual operational and financial control lay with Kesireddy Raja Shekhar Reddy, Dontireddy Vasudeva Reddy, and their associates.

The probe uncovered that the liquor cartel devised a method for illegal earnings through the transport of liquor from depots to retail outlets. Kesireddy Raja Shekhar Reddy, Tuke Kula Eshwar Kiran Kumar Reddy, and Anjani Kumar collaborated with the then-managing director of APSBCL, Dontireddy Vasudeva Reddy, to secure tenders at significantly inflated rates.

SSCSPL was utilized to participate in the tender process and manipulate contracts, while the actual operations were overseen by Tuke Kula Eshwar Kiran Kumar Reddy under Kesireddy Raja Shekhar Reddy’s supervision.

According to the ED, Karumuri Venkata Nageswara Rao and his son Karumuri Sunil Kumar exploited their political influence and close ties with syndicate members to control subcontract allocations and generate substantial illegal profits. They established Messrs Sudarshan Constructions as a dummy subcontractor for SSCSPL, while actual transportation was carried out by other companies. This firm inflated invoices to divert funds into their accounts, which were later transferred to Rao and his family’s personal accounts.

The illicit earnings funded luxury vehicles, expensive watches, advance payments for real estate, and political financing. Previously, the ED had arrested Kesireddy Raja Shekhar Reddy and Dontireddy Vasudeva Reddy on June 11, and Karumuri Sunil Kumar on June 18. On August 6, assets worth ₹37.79 crores were attached, and the first prosecution complaint was filed on August 7.

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