Hyderabad, August 23, 2026 (Yes Punjab News)
The Enforcement Directorate (ED) on Sunday arrested former Andhra Pradesh minister and YSR Congress Party leader Karumuri Nageswara Rao in connection with its money-laundering investigation into alleged irregularities in liquor transportation contracts awarded by the Andhra Pradesh State Beverages Corporation Ltd (APSBCL).
ED officials took Nageswara Rao into custody from his residence in Kondapur, Hyderabad. His arrest follows the rejection of his anticipatory bail plea by the Telangana High Court and the Supreme Court.
The investigation stems from an Andhra Pradesh CID case concerning alleged manipulation of APSBCL liquor transportation tenders and diversion of proceeds through subcontracting arrangements. The ED has alleged that the irregularities resulted in a potential loss of Rs 195.33 crore to the government exchequer.
The agency has already arrested three other accused, including Nageswara Rao’s son Karumuri Sunil Kumar, former APSBCL Managing Director Dontireddy Vasudeva Reddy and Raj Kesireddy. Sunil Kumar was arrested in June.
According to the ED’s investigation, tender conditions were allegedly modified to favour selected entities, including Sigma Supply Chain Solutions Pvt Ltd and Prasad Transports, which the agency has described as front entities. The agency has alleged that the actual operational and financial control remained with individuals linked to Kesireddy, Vasudeva Reddy and their associates.
The ED has also alleged that Nageswara Rao used his political influence to facilitate the induction of Sree Sudarsana Constructions as a subcontractor and that proceeds of crime were subsequently layered and utilised through associated entities.
Nageswara Rao, who served as Civil Supplies Minister in the previous YSRCP government, has denied wrongdoing. The YSRCP has condemned his arrest, alleging political vendetta by the TDP-led coalition government and claiming that the former minister and his family are being targeted.
The ED had earlier conducted searches linked to the case and, in August, provisionally attached assets worth about Rs 37.7 crore linked to Nageswara Rao, his son and others.
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