Hyderabad, June 13: The Enforcement Directorate (ED) has launched a significant operation related to a money laundering case tied to the liquor transport scam in Andhra Pradesh. On June 11, the agency conducted raids at five locations in Hyderabad.
The investigation targeted properties linked to individuals including Kesireddy Raja Sekhar Reddy, Dontireddy Vasudev Reddy, Vijaya Narasimha Reddy, Vallu Sandeep, Karumuri Nageshwar Rao, and Karumuri Sunil Kumar. During the raids, a luxury car, expensive watches valued at approximately ₹9.45 million, and a substantial amount of cash were seized. Additionally, documents related to properties, suspicious joint venture agreements, and crucial papers concerning cash transactions were confiscated.
The ED initiated this investigation based on an FIR filed by the Andhra Pradesh CID. This FIR was lodged following a complaint from the state’s additional secretary (vigilance) under various sections of the Indian Penal Code and the Indian Evidence Act. The case is examining irregularities amounting to around ₹1.953 billion.
The investigation revealed that the terms of liquor transport tenders issued by the Andhra Pradesh State Beverages Corporation Limited were allegedly altered to benefit select companies. It was found that the tender process was manipulated to secure contracts for Messrs Sigma Supply Chain Solutions Private Limited and later for Messrs Prasad Transports. The agency claims these companies were merely fronts, with actual operations and financial control held by others.
Furthermore, the inquiry uncovered an organized network established to generate illegal profits through the liquor transport system. According to the ED, some influential individuals and former officials artificially inflated transport rates, causing losses to the government treasury while securing private gains. Previously, the average transport rate was ₹19.68 per carton, which was raised to approximately ₹35.57 per carton.
The ED has identified Kesireddy Raja Sekhar Reddy as the primary conspirator in this case. Additionally, the former managing director of APSBCL, Dontireddy Vasudev Reddy, is accused of abusing his official position to facilitate these irregularities.
The ED stated that the investigation into various aspects of money laundering and financial irregularities is ongoing, with further revelations expected in the coming days.
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