Former AP minister Karumuri Venkata Nageswara Rao skips ED summons in Hyderabad

The Enforcement Directorate’s Hyderabad unit has initiated provisional asset-attachment proceedings and launched a search for former Andhra Pradesh minister Karumuri Venkata Nageswara Rao after he failed to appear for questioning on Tuesday. Rao skipped the scheduled July 14 deadline regarding an alleged Rs 195.3 crore liquor transportation scam. The investigation has previously scrutinised high-value land transactions linked to the case in the Hyderabad neighborhoods of Khajaguda and Kokapet.

The Telangana High Court had earlier dismissed Rao’s anticipatory bail petition on July 3. According to ED sources, the former minister has not been cooperating with the investigation. The agency previously arrested Rao’s son, Karumuri Sunil Kumar, accusing him of playing a central role in laundering the proceeds of the crime.

The case involves the alleged manipulation of the Andhra Pradesh State Beverages Corporation (APSBCL) liquor transportation tender process between 2020 and 2024. Investigators allege that a decentralised district-wise transportation system was replaced by a centralised state-level policy without proper government approval to benefit a specific syndicate, primarily Sigma Supply Chain Solutions and Prasaad Transports.

The ED claims that genuine transporters were excluded using dummy bidders and fictitious financial credentials. The resulting inflated transportation rates and contract extensions reportedly caused a loss of approximately Rs 195.3 crore to the government exchequer.

According to the agency, Rao acted as a political facilitator to manipulate the tender process, diverting the proceeds through shell entities like Casta Pink and Ezyload Network to distribute kickbacks. The ED further alleged that Rao, through his son, imposed an oral '85:15' profit-sharing arrangement on sub-contractors, forcing them to transfer 85 percent of their profits to the Karumuri family.

Investigators stated that over Rs 11.9 crore was transferred to the personal bank accounts of Sunil Kumar and other family members. This money was allegedly used to purchase vehicles, luxury watches, and fund advances for land transactions in Khajaguda and Kokapet, valued at Rs 35 crore and Rs 30 crore respectively.

In his defense before the Telangana High Court, Rao denied any involvement in the tender process. He argued that he did not hold any formal position in the APSBCL or any tender committee, and that no proceeds of crime were directly traced to his personal bank accounts. He stated he had requested a 10-day adjournment due to medical reasons and to collect documents.

However, the ED opposed his bail, accusing him of coercing business partners to sign fabricated, backdated agreements to disguise illegal commissions. The agency argued that custodial interrogation is necessary to trace the complete money trail and prevent the destruction of evidence.