ED Arrests Former Minister Karumuri Nageswara Rao in Kondapur

The Enforcement Directorate arrested former minister Karumuri Nageswara Rao from his residence in Kondapur in connection with an alleged Rs 195-crore liquor transport scam. Following the arrest, officials took him to Gandhi Hospital in Secunderabad for a routine medical check-up.

According to ED sources, Nageswara Rao had been evading arrest after both the Telangana High Court and the Supreme Court rejected his anticipatory and pre-arrest bail petitions. Investigators subsequently escorted him to the agency's office in Basheerbagh for interrogation regarding money-laundering aspects connected to the case.

The investigation centres on the alleged manipulation of tenders awarded for liquor transportation by the Andhra Pradesh State Beverages Corporation Limited between 2020 and 2024. The ED registered the case after gathering evidence indicating that the former minister accepted a Rs 28-crore bribe from liquor traders during the YSRC government's tenure.

The agency stated that the administration at the time paid Rs 35 per kilometre for transporting liquor, compared to the standard norm of Rs 13 per kilometre. The ED alleged major irregularities in how contracts were granted, claiming Nageswara Rao used his official influence to secure sub-contracts for favoured entities.

The money laundering probe, filed under the Prevention of Money Laundering Act, stems from an initial case registered by the Andhra Pradesh CID following a vigilance department inquiry into transport tender irregularities. Investigators noted that the Enforcement Case Information Report is distinct from the primary liquor scam investigation.

The ED had previously arrested Nageswara Rao's son, Sunil Kumar, in June on allegations of receiving Rs 15 crore in kickbacks to facilitate sub-contracts for a liquor syndicate. The agency has also arrested Vasudeva Reddy, the former managing director of the AP Beverages Corporation, alongside Kasireddy Rajashekar Reddy in connection with the ongoing probe.