Hyderabad, August 24: The Enforcement Directorate (ED) has arrested former Andhra Pradesh minister Karumuri Nageswara Rao in connection with a liquor transport scam. The arrest took place on Sunday at his residence in Kondapur, Hyderabad.
The central agency is investigating alleged irregularities in liquor transport tenders and financial transactions. Prior to Rao’s arrest, the ED had already detained three other individuals, including his son Karumuri Sunil Kumar, former managing director of the Andhra Pradesh State Beverages Corporation Limited (APSBCL) Dontireddy Vasudeva Reddy, and Raj Kesireddy.
Karumuri Nageswara Rao served as the Minister for Civil Supplies in the YSR Congress Party (YSRCP) government. Following Sunil Kumar’s arrest in June, the ED informed a special PMLA court that he had played a role in securing sub-contracts for liquor transport due to his father’s ministerial position. The court was told that Sunil Kumar and his associates had gained illegal financial benefits.
The ED initiated its investigation based on an FIR filed by the Andhra Pradesh CID. This FIR was registered under various sections of the Indian Penal Code (IPC) and the Indian Evidence Act (BNS), following a complaint from the additional secretary (vigilance) of the Andhra Pradesh government, alleging a loss of ₹195.33 crores to the state treasury.
The investigation revealed that the terms of the APSBCL liquor transport tenders were deliberately altered to favor select companies, particularly Sigma Supply Chain Solutions Private Limited (SSCSPL) and later Prasad Transports. According to the agency, these companies operated merely as fronts, while actual operations and financial control were linked to Kesireddy, Vasudeva Reddy, and their associates.
The ED also uncovered that the alleged liquor cartel had established a scheme to earn illegal profits while transporting liquor from depots to retail outlets in Andhra Pradesh.
Meanwhile, YSRCP leaders and former ministers Chelluboina Venu Gopal Krishna, Anil Kumar Yadav, and Vidadala Rajani have strongly condemned Nageswara Rao’s arrest. They labeled it as a politically motivated action by the Telugu Desam Party (TDP)-led coalition government.
In a joint statement, they claimed that a false case was fabricated to target YSRCP leaders. They noted that senior backward class leader Karumuri Nageswara Rao was arrested in Hyderabad under the pretext of alleged irregularities in liquor transport. They recalled that Sunil Kumar had been arrested earlier and asserted that the entire family is being deliberately targeted.
The YSRCP leaders maintained that liquor procurement and sales during their government were conducted transparently. They stated that illegal liquor was curtailed, the number of liquor shops was reduced, and retail sales were managed by the central government. They also mentioned the closure of permit rooms and belt shops.
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