Former Andhra Pradesh Minister Arrested in APSBCL Liquor Transportation Money Laundering Case
India’s Directorate of Enforcement (ED) has arrested former Andhra Pradesh Civil Supplies Minister and former MLA Karumuri Venkata Nageswara Rao in its money-laundering investigation into the Andhra Pradesh State Beverages Corporation Ltd. (APSBCL) liquor transportation case.
ED said Rao was arrested on 23 August 2026 under the Prevention of Money Laundering Act, 2002 (PMLA). He was produced before the Special Court under PMLA in Nampally, Hyderabad on 24 August and was remanded to 15 days of judicial custody.
Investigation centres on alleged ₹195.33 crore loss
The money-laundering investigation stems from an FIR registered by the Andhra Pradesh CID following a complaint from the state government’s Vigilance department. The underlying case concerns an alleged ₹195.33 crore loss to the government exchequer arising from APSBCL liquor transportation arrangements.
According to ED, tender conditions were allegedly modified to favour selected entities, including Sigma Supply Chain Solutions Pvt. Ltd. (SSCSPL) and later Prasaad Transports. ED alleges these companies functioned as front entities while operational and financial control remained with people associated with the alleged liquor transportation syndicate.
The agency said the transportation tender was secured at rates substantially above prevailing levels, allegedly generating proceeds of crime. It further alleges that SSCSPL was used to participate in the tender process while the actual transportation work was controlled by other individuals.
Inflated invoices and transfers to personal accounts alleged
ED alleges that Rao and his son, Karumuri Sunil Kumar, exercised substantial influence over the allocation of liquor transportation sub-contracts. Investigators said Sree Sudarsana Constructions was arranged as a dummy sub-contractor of SSCSPL even though transportation was carried out by other parties.
According to the agency, inflated invoices were raised by Sree Sudarsana Constructions to divert funds into its bank accounts. ED alleges that money received through this arrangement was subsequently transferred to the personal bank accounts of Rao and members of his family, while part of the transportation proceeds was also used for their personal expenses.
ED further alleges that proceeds of crime were used to acquire high-end vehicles and luxury watches, make advances towards purchases of immovable property, provide political funding, and cover personal and family expenses through bank transfers and cash transactions. The agency says these transactions were used to project the proceeds as genuine business income.
Earlier arrests and ₹37.79 crore attachment
The investigation has already resulted in the arrests of Kessireddy Raja Shekhar Reddy and Dontireddy Vasudeva Reddy on 11 June 2026, and Karumuri Sunil Kumar on 18 June. ED said all three remain in judicial custody.
A provisional attachment order covering properties worth ₹37.79 crore was issued on 6 August, and ED filed its first prosecution complaint before the Special Court on 7 August against the three previously arrested persons and others.
The investigation remains ongoing. The allegations described by ED have not been finally adjudicated by a court.
