Andhra Pradesh's former minister YSR Congress leader and former minister Karumuri Venkata Nageswara Rao was arrested by the Enforcement Directorate on Sunday in connection with the state's alleged liquor transportation scam.
Rao was arrested in Hyderabad in a money-laundering probe linked to alleged manipulation of Andhra Pradesh State Beverages Corporation, or the APSBCL's liquor-transport tender and diversion of proceeds through subcontracting.
The Central agency alleges that the transport project generated about Rs 349 crore, with Rs 195.3 crore estimated as alleged proceeds of crime, and that Rao and his son received around Rs 15 crore through cash and banking transactions.
Rao's son Sunil Kumar was arrested earlier, while the ED has provisionally attached assets worth about Rs 37.7 crore in the case.
Rao's arrest came nearly a month after the Supreme Court dismissed a petition for anticipatory bail filed by the former minister who was part of YS Jagan Mohan Reddy's Cabinet between 2010 and 2024.
The Case
The case pertains to the alleged manipulation of liquor transportation tenders issued by APSBCL. The alleged liquor-transport scam relates to the tender process initiated in 2020 and transactions during 2021-23.
Earlier the AP CID-SIT has identified multiple accused, with former APSBCL MD D. Vasudeva Reddy as A1, former advisor to then Chief Minister Raj Kesireddy as A4 and Karumuri Sunil (son of Karumuri Venkata Nageswara Rao) as A8 in the case.
Who Is Rao
Rao is also an accused in the ED's money-laundering investigation where the central agency has estimated the loss to the state treasury at approximately Rs 195 crore.
Rao served as Civil Supplies Minister under the previous YSR Congress government led by Jaganmohan Reddy. He has been under the scrutiny of the Enforcement Directorate since June, when multiple searches were carried out at his properties by the agency.
The investigation started after the Andhra Pradesh Criminal Investigation Department filed a case following a complaint from the Vigilance Department.
YSRCP Says Political Vendetta
Reacting to the arrest of Karumuri Venkata Nageswara Rao, the state's former ministers Chelluboyina Venugopala Krishna, Anil Kumar Yadav, and Vidadala Rajini, in a joint statement, claimed that a "false case" was fabricated to target leaders of the YSR Congress.
Karumuri, a senior leader, was unfairly arrested, they said, pointing out that his son Sunil had also been detained earlier and stating that the "entire family was being deliberately targeted".
In their statement, they maintained that liquor procurement and sales during the YSRCP government were conducted transparently.
YSRCP leaders strongly condemned the arrest, calling it another attempt by the TDP-led NDA government to intimidate opposition leaders and divert focus from public issues.
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