Archive · 23 Aug 2026
ED Arrests Former Andhra Minister in Liquor Transport Case
The Enforcement Directorate arrested former Andhra Pradesh minister Karumuri Nageswara Rao.
The arrest is connected to an investigation into the transportation of liquor in the state.
Investigators say some transport tender rules may have been changed to help particular companies.
They allege that these companies were fronts for people connected to the case.
The agency is investigating a possible government loss of ₹195.33 crore.
One report also said the ED alleges an inflated transport rate and a ₹28 crore bribe, while another allegation concerns a ₹15 crore kickback involving Rao’s son.
The ED is investigating the case under the money-laundering law.
Rao’s son and two other people were arrested earlier.
YSRCP leaders deny wrongdoing and say the arrests are politically motivated.
The Enforcement Directorate arrested former Andhra Pradesh Civil Supplies minister Karumuri Venkata Nageswara Rao in Hyderabad under the Prevention of Money Laundering Act.
The case concerns alleged tender manipulation, financial irregularities and money laundering in liquor transportation during the previous YSR Congress Party government.
The ED alleges that transport contracts favored Sigma Supply Chain Solutions and later Prasad Transports, which it described as front entities for associates of the accused.
Investigators are examining an alleged ₹195.33 crore loss to the Andhra Pradesh government and alleged unlawful gains, including claims involving bribes and inflated transport rates.
The ED had earlier arrested Nageswara Rao’s son Karumuri Sunil Kumar, former Andhra Pradesh State Beverages Corporation managing director Donthireddy Vasudeva Reddy and Kasireddy Raja Sekhar Reddy; YSRCP leaders called the case political vendetta.
- Who
- The Enforcement Directorate arrested former Andhra Pradesh Civil Supplies minister Karumuri Venkata Nageswara Rao; his son Karumuri Sunil Kumar and two other accused had already been arrested.
- What
- The ED is investigating alleged liquor transport tender manipulation, financial irregularities, unlawful gains and money laundering.
- When
- Nageswara Rao was arrested on Sunday; one report places the relevant bail developments on July 3 and July 30, while the articles do not consistently provide the arrest date. The ED registered its PMLA case in May, and Sunil Kumar was arrested in June.
- Where
- Nageswara Rao was arrested at his residence in Kondapur, Hyderabad, and was taken to the ED office in Basheerbagh for questioning.
- Why
- The investigation concerns alleged manipulation of liquor transport contracts, financial transactions and a claimed ₹195.33 crore loss to the Andhra Pradesh government.
ED allegations
YSRCP leaders’ response
Tender process
ED allegations
The ED alleges that Andhra Pradesh State Beverages Corporation liquor transport tender conditions were deliberately modified to favor Sigma Supply Chain Solutions and later Prasad Transports, which allegedly acted as front entities.
YSRCP leaders’ response
YSRCP leaders said liquor procurement and sales under their government were conducted transparently and rejected allegations of tender wrongdoing.
Financial impact
ED allegations
The agency is investigating an alleged ₹195.33 crore loss to the government and alleged unlawful gains through liquor transportation. One report also attributed claims of a ₹28 crore bribe and inflated transport rates to the ED.
YSRCP leaders’ response
YSRCP leaders denied wrongdoing and said the case was falsely created to target their party’s leaders.
Reason for arrest
ED allegations
The ED says the arrest is part of its money-laundering investigation into alleged tender irregularities and financial transactions; reports said Rao’s anticipatory and pre-arrest bail petitions were rejected.
YSRCP leaders’ response
YSRCP leaders called the arrest political vendetta by the TDP-led coalition government and said Rao’s family was being deliberately targeted.
- Arrested
- Karumuri Venkata Nageswara Rao, former Civil Supplies minister in the previous YSR Congress Party government
- Investigating agency
- Enforcement Directorate
- Legal basis
- Prevention of Money Laundering Act
- Alleged government loss
- ₹195.33 crore
- Earlier arrests
- Karumuri Sunil Kumar, Donthireddy Vasudeva Reddy and Kasireddy Raja Sekhar Reddy
- Companies named
- Sigma Supply Chain Solutions Pvt Ltd and Prasad Transports
- Additional allegations reported
- The ED allegedly examined a ₹28 crore bribe, a ₹15 crore kickback involving Sunil Kumar, and transport payments of ₹35 per kilometre against a stated norm of ₹13 per kilometre.
