On August 6, the Enforcement Directorate (ED) provisionally attached assets worth Rs 37.7 crore in Hyderabad, linked to former Andhra Pradesh minister Karumuri Venkata Nageswara Rao, his son Karumuri Sunil Kumar, and others, as part of a money-laundering probe into the liquor transportation contracts of the Andhra Pradesh State Beverages Corporation Limited (APSBCL). The ED’s Hyderabad zonal office issued the order under the Prevention of Money Laundering Act (PMLA). The attached assets include land parcels in Kokapet and Khajaguda, luxury vehicles, and watches. The ED has described these properties as direct proceeds of crime and value-equivalent assets.
The case stems from a first information report (FIR) registered by the Andhra Pradesh CID on February 10, concerning the centralisation of liquor transportation contracts by the APSBCL. The ED alleged that then APSBCL managing director Dontireddy Vasudeva Reddy, in connivance with political leaders and private individuals, scrapped the district-wise transport arrangement in favour of a statewide contract without prior government approval. The agency claimed that tender conditions were manipulated to favour pre-selected entities, resulting in transportation rates rising to between Rs 32 and Rs 35 per carton, from around Rs 19.6 per carton under the earlier system.
The ED pegged the proceeds of crime at Rs 195.32 crore and alleged that Kessireddy Raja Shekhar Reddy, a former IT adviser to the Andhra Pradesh government, controlled front entities and was a key beneficiary. The agency further alleged that Nageswara Rao secured transport sub-contracts and sought an 85 per cent share of the profits, while Sunil Kumar handled operations through Sree Sudarsana Constructions. Investigators found that funds were layered through bogus invoices, shell entities, cash security deposits, and land deals that fell through.
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📰 Source: Siasat Gulf