Karumuri Nageswara Rao arrested in Andhra Pradesh liquor scam

The Enforcement Directorate (ED) has arrested former Andhra Pradesh minister Karumuri Nageswara Rao in connection with a multi-crore liquor transport scam. Rao, who served as the Civil Supplies Minister during the YSRCP government, was taken into custody from his residence in Kondapur, Hyderabad. Following his arrest, he was taken to Gandhi Hospital for a medical examination.

The investigation centers on alleged irregularities in liquor transportation tenders for the Andhra Pradesh State Beverages Corporation Limited (APSBCL) between 2020 and 2024. Authorities allege that tender conditions were manipulated to favor specific companies, such as Sigma Supply Chain Solutions Private Limited and Prasad Transports, which reportedly acted as shell entities. The ED claims the scheme resulted in a loss of approximately 195.33 crore rupees to the state exchequer.

Investigators allege that transportation rates were inflated, with the government paying 35 rupees per kilometer instead of the standard 13 rupees. Rao is accused of using his influence to secure sub-contracts for associates. His son, Sunil Kumar, was previously arrested in June for allegedly receiving kickbacks to facilitate these sub-contracts. Other individuals already in custody include former APSBCL Managing Director Dontireddy Vasudev Reddy and Raj Kasireddy.