Hyderabad, Aug 24 (SocialNews.XYZ) A Special Court under PMLA here on Monday sent former Andhra Pradesh Minister Karumuri Venkata Nageswara Rao to judicial custody for 15 days in the APSBCL liquor transportation scam.
The Directorate of Enforcement (ED), Hyderabad Zonal Office, had arrested him on Sunday from his residence in Hyderabad.
The Central agency said in a release on Monday that he was arrested under the provisions of the Prevention of Money Laundering Act, 2002, for acting as a key facilitator in the liquor transportation scam.
The ED initiated an investigation on the basis of an FIR registered by CID, Andhra Pradesh, for loss to the government exchequer to the tune of Rs 195.33 crore.
Investigations revealed that the liquor transport tender conditions of Andhra Pradesh State Beverages Corporation Ltd. (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 Kessireddy Raja Shekhar Reddy, Dontireddy Vasudeva Reddy and their associates.
The ED said the liquor cartel devised a mechanism to generate unlawful gains through the transportation of liquor from depots to retail outlets in Andhra Pradesh.
Kessireddy Raja Shekhar Reddy, Tukekula Eswar Kiran Kumar Reddy and Anjani Kumar, in active connivance with Dontireddy Vasudeva Reddy, the then Managing Director of APSBCL, abused their influence to secure liquor transportation tenders at rates substantially higher than 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 obtain the contract through manipulation. 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, under the direct supervision of Kessireddy Raja Shekhar Reddy alias Raj.
ED investigation established that Nageswara Rao, along with his son Sunil Kumar, by leveraging political influence and close association with members of the liquor syndicate, exercised substantial control over the allotment of liquor transportation sub‑contracts and derived significant illicit financial gains.
The proceeds of crime were utilised by Nageswara Rao and Sunil Kumar for acquisition of luxury assets, including high‑end motor vehicles and watches, payment of advances towards immovable properties, political funding and meeting personal and family‑related expenditures through direct banking transfers and cash transactions, thereby projecting the utilisation of proceeds of crime as genuine business income.
Earlier, ED arrested Kessireddy Raja Shekhar Reddy and Dontireddy Vasudeva Reddy on June 11, 2026, and Sunil Kumar on June 18, 2026. All three are presently in judicial custody.
Further, a provisional attachment order for 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. Further investigation is in progress.
Source: IANS
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