Andhra Pradesh liquor transport scam investigation

The Enforcement Directorate (ED) arrested former Andhra Pradesh Civil Supplies Minister Karumuri Venkata Nageswara Rao in Hyderabad regarding an alleged liquor transport scam. The investigation centers on irregularities in liquor transport tenders and financial transactions involving 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 for a liquor cartel. Investigators claim transportation rates were inflated, with the government paying 35 rupees per kilometer instead of the standard 13 rupees. This scheme potentially caused a loss of 195.33 crore rupees to the state exchequer. Rao is accused of using his influence to secure sub-contracts for associates.

This arrest follows the previous detention of Rao’s son, Karumuri Sunil Kumar, who was arrested in June for allegedly receiving kickbacks to facilitate sub-contracts. Other individuals already in custody include former APSBCL Managing Director Dontireddy Vasudev Reddy and Raj Kesireddy.

The Yuvajana Sramika Rythu Congress Party (YSRCP) has condemned the arrest, labeling it an ‘act of political vendetta’ by the TDP-led coalition government. YSRCP leaders characterized the investigation as a ‘false case’ manufactured to target their leadership, defending their previous administration’s liquor policies as transparent while accusing the current government of attempting to divert attention from existing cases involving Chandrababu Naidu.