ED Arrests AP Ex‑Minister in Liquor Scam
The ED had previously arrested his son Sunil Kumar in the case for allegedly acting as facilitator
HYDERABAD: Directorate of Enforcement (ED) officials arrested Andhra Pradesh former minister and YSRC leader Karumuri Venkata Nageswara Rao from his residence in Kondapur here, in connection with the ₹195‑crore liquor transport scam case. He had been evading arrest after both the Telangana High Court and the Supreme Court rejected his anticipatory bail and pre‑arrest bail petitions, sources in the ED disclosed.
The case pertains to Nageswara Rao’s alleged manipulation of tenders awarded for the transportation of liquor for the AP State Beverages Corporation Limited between 2020 and 2024. The ED registered a case following evidence that he had taken a ₹28‑crore bribe from liquor traders during the YSRC government’s tenure. According to the agency, the then government paid ₹35 per km for transporting liquor, against the norm of ₹13. The ED also alleged irregularities in the award of contracts for liquor transport.
The ED case, registered under the Prevention of Money Laundering Act, is based on a case lodged by the AP CID following a vigilance department investigation into alleged irregularities in liquor transport contracts. The ED says the ex‑minister used his influence to secure sub‑contracts.
The ED had previously arrested his son Sunil Kumar in the case for allegedly acting as facilitator. It also arrested Vasudeva Reddy, former MD of the AP Beverages Corporation, and Kasireddy Rajashekar Reddy. Sunil Kumar was arrested in June on charges that he allegedly received ₹15 crore in kickbacks to facilitate sub‑contracts for a liquor syndicate.
ED officials said they escorted Nageswara Rao to the agency’s office in Basheerbagh for questioning with regard to the money‑laundering aspect of the liquor scam. Officials reportedly questioned him on whether his involvement in the tender process was influenced to favour certain entities. As per the evidence collected, the enforcement case information report (ECIR) was distinct from the main liquor scam case.
On July 30, after the Telangana High Court rejected Nageswara Rao’s petition for anticipatory bail, he was waiting to file an appeal when the ED moved in, sources said. Earlier, on July 3, the High Court had rejected his request for pre‑arrest bail.