Archive · 10 Sep 2026
Andhra Pradesh Government Sanctions ED Prosecution of Former APSBCL Chief
The Andhra Pradesh government has allowed prosecutors to pursue a money-laundering case against a former liquor corporation chief.
The case is about how liquor was transported across the state.
Investigators say the transportation system was changed without the required approval.
They allege that this made transportation much more expensive.
The government estimates that it lost about ₹195.33 crore.
The ED also says money was moved through companies used to hide its source.
Vasudeva Reddy was arrested and placed in judicial custody.
The government’s sanction now formally permits prosecution under the money-laundering law.
The Andhra Pradesh government sanctioned prosecution of former APSBCL managing director Dontireddy Vasudeva Reddy.
The Enforcement Directorate case concerns alleged irregularities in the corporation’s liquor transportation tender process.
Investigators allege a centralized transport policy increased costs and caused an estimated ₹195.33 crore loss.
The ED alleges funds were routed through shell entities and fake vendors as kickbacks and commissions.
Vasudeva Reddy was arrested on June 11, 2026, and later remanded to judicial custody.
- Who
- The Andhra Pradesh government, the Enforcement Directorate, and former APSBCL managing director Dontireddy Vasudeva Reddy.
- What
- The government sanctioned prosecution of Vasudeva Reddy in an alleged money-laundering case linked to liquor transportation tenders.
- When
- The FIR was registered on February 10, 2026; Vasudeva Reddy was arrested on June 11, 2026; sanction was granted on Wednesday.
- Where
- Andhra Pradesh, with the government order issued from Amaravati.
- Why
- The ED and state authorities allege that tender and transportation-policy irregularities caused government losses and generated concealed unlawful proceeds.
- Accused
- Dontireddy Vasudeva Reddy, former managing director of APSBCL
- Investigating agency
- Enforcement Directorate
- Related FIR
- APCID FIR No. 11/2026, registered on February 10, 2026
- Estimated government loss
- ₹195.33 crore
- Transport cost increase
- From an average of ₹19.68 per carton box to as high as ₹35.57
- Arrest date
- June 11, 2026
- Legal provisions
- Prosecution sanctioned for alleged money laundering under Section 3 of the Prevention of Money Laundering Act, punishable under Section 4