ED arrests ex-minister Karumuri Nageswara Rao

The Enforcement Directorate (ED) on Sunday arrested former Andhra Pradesh minister Karumuri Nageswara Rao in connection with the transport scam linked to the liquor scam.

The ED officials took him into custody from his residence at Kondapur in Hyderabad.

The Central agency is probing the alleged irregularities in liquor transport tenders and financial transactions.

It has already arrested three accused, including Nageswara Rao’s son Karumuri Sunil Kumar, former Managing Director of Andhra Pradesh State Beverages Corporation Ltd (APSBCL) Dontireddy Vasudeva Reddy and Raj Kesireddy.

Nageswara Rao was a minister for Civil Supplies in the YSR Congress Party government

After the arrest of Sunil Kumar in June, ED had told the Special Court (PMLA) that, as the son of the minister, he managed to secure liquor transport sub-contracts for his business associates. The court was told that Sunil Kumar and his associates derived unlawful pecuniary gains.

ED initiated an investigation based on an FIR registered by CID, Andhra Pradesh, under various sections of the IPC and the BNS, based on a complaint of the Additional Secretary to the Government of Andhra Pradesh (Vigilance), for loss to the Government exchequer to the tune of Rs 195.33 crore.

ED investigation revealed that the liquor transport tender conditions of APSBCL were deliberately modified and tailored in favour of selected entities, namely Sigma Supply Chain Solutions Pvt Ltd (SSCSPL) and subsequently Prasad Transports, which acted merely as front entities while the actual operational and financial control remained with persons associated with Kesireddy, Vasudeva Reddy and their associates.

ED investigation further revealed that the liquor cartel devised a mechanism to generate unlawful gains through the transportation of liquor from depots to retail outlets in Andhra Pradesh.

Meanwhile, YSRCP leaders and former Ministers Chelluboyina Venugopala Krishna, Anil Kumar Yadav and Vidadala Rajini strongly condemned the arrest of Karumuri Nageswara Rao, calling it an act of political vendetta by the TDP-led coalition government.

In a joint statement, they said a false case was created to target YSRCP leaders and that Karumuri, a senior BC leader, was unfairly arrested in Hyderabad over alleged irregularities in liquor transportation. They recalled that his son Sunil was also arrested earlier and said the entire family was being deliberately targeted.

They said liquor procurement and sales during the YSRCP government were conducted transparently. Illegal liquor was curbed, the number of liquor shops was reduced, and retail outlets were operated by the government. Permit rooms and belt shops were also abolished.