ED arrests Raj Kesireddy in liquor scam

The Enforcement Directorate (ED) on Thursday arrested Kesireddy Rajasekhara Reddy, aka Raj Kesireddy, the main accused in the multi-crore liquor scam in Andhra Pradesh.

The arrest was made after the Central agency conducted searches at multiple locations in Andhra Pradesh and Telangana as part of the investigation into the liquor transportation scam linked to the alleged liquor scam during YSR Congress Party rule.

The ED officials conducted searches at premises linked to Raj Kesireddy, a former advisor to former Chief Minister Y.S. Jagan Mohan Reddy, and other accused at 10 places in Hyderabad, sources said.

The agency conducted searches at the residence of Raj Kesireddy in Nanakramguda and the premises linked to six other accused at other places in the Rs 349 crore liquor transport scam.

Searches were also conducted at the residences and other premises of former civil supplies minister Karumuri Nageswara Rao, his son Karmuri Sunil Kumar, former managing director of AP State Beverages Corporation Limited, Vasudeva Reddy, and his relative Narasimha Reddy.

Raj Kesireddy was arrested by the Special Investigation Team (SIT) of Andhra Pradesh CID in 2025. The Andhra Pradesh High Court on April 7, 2026, granted him bail.

There are allegations that hundreds of crores changed hands in the liquor scam. The Central agency reportedly found that funds were diverted through hawala and money laundering channels.

In April, the ED conducted searches at the houses, offices and other premises of YSR Congress Party leader and former MLA Chevireddy Bhaskar Reddy, Raj Kesireddy, Bharati Cements director Balaji Govindappa, Krishna Mohan and Dhanunjaya Reddy in Hyderabad, Vijayawada and Tirupati.

The Central agency is investigating on the basis of a report of the Special Investigation Team (SIT).

In March, the ED attached movable and immovable properties worth Rs 441.63 crore belonging to Kesireddy Rajasekhara Reddy, his family members and related entities; Booneti Chanakya and his related entities; relatives and entities of Donthireddy Vasudeva Reddy; and other persons and entities under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The Central agency initiated the investigation based on an FIR registered by the CID, Andhra Pradesh, on the complaint of the Principal Secretary to the Government of Andhra Pradesh, for loss to the Government exchequer to the tune of Rs 4,000 crore.

According to the ED, its investigations revealed that physical cash kickbacks were collected and stored at multiple locations in Hyderabad, from where they were subsequently moved, distributed, or disposed of by designated cash handlers of the syndicate.

The ED investigation had revealed a money trail of Rs 1048.45 crore in kickbacks. Numerous distilleries were forced to provide these payments in various forms, including cash and gold, as well as through the control and operation of certain distilleries by the liquor syndicate. Additionally, financial benefits were obtained from the transportation of liquor.