ED arrests ex-Andhra Pradesh minister Karumuri Nageswara Rao in liquor transport case | Hyderabad News

Former Andhra Pradesh minister Karumuri Nageswara Rao

HYDERABAD: The Enforcement Directorate (ED) on Sunday arrested former Andhra Pradesh minister Karumuri Nageswara Rao in connection with its money-laundering probe into the alleged manipulation of the Andhra Pradesh State Beverages Corporation Ltd (APSBCL) liquor transportation tender and diversion of proceeds generated through sub-contracting.ED sources said Nageswara Rao was arrested on Sunday afternoon from Kondapur in Hyderabad, where he was allegedly staying while evading the agency’s proceedings. His anticipatory bail pleas had earlier been rejected by both the Andhra Pradesh High Court and the Supreme Court.The ED case, registered under the Prevention of Money Laundering Act (PMLA), stems from an Andhra Pradesh CID FIR based on a vigilance report into alleged irregularities in liquor transportation contracts during the previous government.ED alleges Rs 15 crore flowed to Rao, sonThe ED has alleged that Nageswara Rao and his son, Karumuri Sunil Kumar, received around Rs 15 crore through cash and banking transactions from people linked to the alleged liquor transportation syndicate.According to the agency’s case, Nageswara Rao allegedly used his influence to help secure liquor transportation sub-contracts. In its subsequent attachment proceedings, the ED alleged that he demanded an 85% share of profits, while Sunil Kumar handled operational aspects through Sree Sudarsana Constructions.Sunil Kumar was arrested by the ED in June 2026. The agency has alleged that he acted as a facilitator, used political contacts to secure sub-contracts and was involved in handling funds generated through the transport arrangement.The ED has linked transactions and assets relating to the family and others, including land, vehicles, watches, quarry rights, bank deposits and other properties, to the alleged proceeds of crime. In August, the agency provisionally attached assets worth about Rs 37.7 crore, including land in Kokapet and Khajaguda in Hyderabad, quarry rights, vehicles, watches and bank balances.The attachment is provisional under the PMLA and is subject to adjudication and further legal proceedings.Statewide tender, sub-contracting under scannerThe transport case centres on the transportation of liquor from APSBCL depots to government-run retail outlets across Andhra Pradesh.According to the ED’s allegations, APSBCL moved away from a district-wise transportation system and introduced a centralised statewide tender in 2020. The contract was allegedly awarded to Sigma Supply Chain Solutions Pvt Ltd, which the agency has described as a front or nominal prime contractor.The ED has alleged that although Sigma formally held the contract, the actual transportation was carried out through entities and local contractors linked to the alleged liquor syndicate. According to the agency, Sigma received about 4% for its formal and technical role, while the syndicate retained most of the revenue generated through the arrangement.The tender was allegedly awarded at around Rs 33 per case per kilometre. Earlier transportation costs were reported at around Rs 19.60 per carton, while local sub-contractors allegedly carried out the work for about Rs 19 to Rs 22. The ED alleges that the difference between the contracted rate and the amount paid to sub-contractors generated unlawful gains for intermediaries and beneficiaries.The agency has also alleged that tender conditions were manipulated to favour pre-selected entities.According to the ED’s figures, the transportation project generated about Rs 349 crore between October 2021 and March 2023, while the agency has estimated the alleged proceeds of crime, or wrongful loss, in the transport case at Rs 195.3 crore. The Rs 15 crore attributed to Nageswara Rao and his son forms part of the alleged money trail being investigated.