ED Arrests AP Ex-Minister Karumuri Venkata Nageswara Rao in Kondapur

Directorate of Enforcement (ED) officials arrested former Andhra Pradesh minister and YSRC leader Karumuri Venkata Nageswara Rao from his residence in Kondapur, Hyderabad, in connection with a ₹195-crore liquor transport scam case.

Nageswara Rao was taken into custody after both the Telangana High Court and the Supreme Court rejected his anticipatory and pre-arrest bail petitions. Following the arrest, officials escorted him to the ED office in Basheerbagh for questioning regarding the money-laundering aspects of the case.

The case centres on the alleged manipulation of tenders awarded for the transportation of liquor for the Andhra Pradesh State Beverages Corporation Limited between 2020 and 2024. The ED registered the money laundering case following evidence that Nageswara Rao accepted a ₹28-crore bribe from liquor traders during the YSRC government's tenure.

According to the agency, the then state government paid ₹35 per kilometre for transporting liquor, against the standard norm of ₹13 per kilometre. The ED alleged significant irregularities in the awarding of transportation contracts and stated that the former minister used his influence to secure sub-contracts for select entities.

The ED's investigation, registered under the Prevention of Money Laundering Act, stems from an earlier case lodged by the Andhra Pradesh CID following an inquiry by the state vigilance department into liquor transport contracts. Investigators noted that the Enforcement Case Information Report (ECIR) remains distinct from the main liquor scam case.

The central agency had previously arrested Nageswara Rao's son, Sunil Kumar, in June for allegedly acting as a facilitator and receiving ₹15 crore in kickbacks to secure sub-contracts for a liquor syndicate. The ED also previously arrested Vasudeva Reddy, the former managing director of the AP Beverages Corporation, and Kasireddy Rajashekar Reddy in connection with the investigation.

Nageswara Rao had sought legal relief, but the Telangana High Court rejected his request for pre-arrest bail on July 3, followed by the dismissal of his anticipatory bail petition on July 30. ED officials moved in to execute the arrest while he was waiting to file an appeal.