Liquor Transportation Scam: PMLA Court Rejects Bail Petitions Of Ex-Minister Karumuri And Son
The agency alleged that the proceeds of crime were used to acquire luxury vehicles and watches: Reports
HYDERABAD: A Special Court for Prevention of Money Laundering Act (PMLA) cases in Nampally on Tuesday dismissed the bail petitions filed by Andhra Pradesh former civil supplies minister Karumuri Venkata Nageswara Rao and his son Sunil Kumar in the alleged liquor transportation scam.
The Enforcement Directorate (ED) had arrested Nageswara Rao on August 23, alleging that he played a key role in the scam. It had earlier arrested Sunil Kumar on June 18. Both wer lodged in Chanchalguda Central Prison under judicial remand.
According to the ED, they allegedly used their political influence and links with members of the liquor transportation syndicate to secure sub-contracts and derive illicit gains.
The agency alleged that they arranged Sree Sudarsana Constructions as a dummy sub-contractor of Sigma Supply Chain Solutions Pvt Ltd (SSCSPL). Though other entities carried out the transportation, inflated invoices were allegedly raised to divert funds into the firm's bank accounts. The money was later transferred to the personal accounts of Nageswara Rao and his family members, the ED claimed.
The agency alleged that the proceeds of crime were used to acquire luxury vehicles and watches, pay advances for properties, fund political activities and meet expenses.
The case originated from an FIR registered by the Andhra Pradesh CID over alleged irregularities in liquor transportation contracts, causing a loss of `195.33 crore to the state exchequer. The ED had earlier arrested Kessireddy Raja Shekhar Reddy and Dontireddy Vasudeva Reddy. It also issued a provisional attachment order covering properties worth `37.79 crore.