HYDERABAD : The Enforcement Directorate (ED) on Thursday conducted searches at multiple locations in Hyderabad and Andhra Pradesh in connection with its money laundering investigation into the alleged transportation scam linked to the Andhra Pradesh liquor case.Searches were carried out at premises linked to former Andhra Pradesh civil supplies minister Karumuri Nageswara Rao, his son Karumuri Sunil Kumar, and alleged syndicate mastermind Raj Kesireddy. ED teams also searched Kesireddy’s residence at Ekta Highland Apartments in Nanakramguda, Hyderabad.The agency conducted searches at the residence of D. Vasudeva Reddy, former Managing Director of the Andhra Pradesh State Beverages Corporation Limited (APSBCL), located at My Home Escape in Hyderabad. Searches were also conducted at the premises of his brother-in-law Vijay Narasimha Reddy in Kokapet and at locations linked to Vallu Sandeep, described by ED sources as a mediator associated with Sri Sudarshan Firm.According to ED sources, Sri Sudarshan Firm received about Rs 68 crore. The agency further alleged that Karumuri Nageswara Rao and his son received Rs 15 crore through cash and banking channels from members of the liquor syndicate involved in the transportation scam.ED sources said Sigma Supply Chain Solutions Pvt Ltd participated in the transportation tender and was allegedly used as a front entity. However, the agency stated that no individuals associated with Sigma are accused of involvement in the alleged scam. ED also claimed that TEKKR was a non-existent company and that two persons identified as Sai and Eeswar are absconding.The searches relate to an Enforcement Case Information Report (ECIR) registered by the ED into an alleged transportation racket connected to the movement of liquor from depots to government retail outlets in Andhra Pradesh. The agency’s investigation focuses on a centralized liquor transportation tender floated by APSBCL under the leadership of then Managing Director D. Vasudeva Reddy.According to ED, a centralized open tender floated by APSBCL on October 10, 2020, for transportation of liquor across the state was awarded at a rate of Rs 33 per case per kilometre. The contract value for the first year was estimated at about Rs 73 crore. Prior to the centralized system, transportation was reportedly handled on a depot-wise basis.The agency alleged that the tender was awarded to Delhi-based Sigma Supply Chain Solutions Pvt Ltd under a secret revenue-sharing arrangement. ED claimed that while Sigma was the prime tender holder, actual transportation operations were handled by entities and individuals linked to the syndicate. The agency alleged that 95-96% of the revenue generated under the arrangement was retained by the syndicate, while Sigma retained around 4% for acting as the principal contractor and providing technical facilitation.According to the ED, TEKKR, allegedly controlled by syndicate member T. Eeswar Kiran Kumar Reddy, also known as Kiran Kumar, handled manpower and local logistics. The agency stated that Kiran Kumar has not been available for investigation. ED described him as a close associate of alleged mastermind Raj Kesireddy and alleged that he used his contacts to facilitate operations. The agency also claimed that several MLAs were linked to the arrangement.The ED alleged that Vasudeva Reddy, in connivance with members of the syndicate, used his official position to float and award the tender to a front entity at inflated rates. The agency estimated that the transportation project generated around Rs 349 crore from APSBCL between October 2021 and March 2023.ED further alleged that a portion of these funds was diverted through shell companies, routed into real estate ventures and layered through multiple entities to conceal the proceeds of crime. The agency described the transportation arrangement as an additional mechanism through which the syndicate allegedly generated and laundered money apart from the main liquor scam.According to the ED, companies including Arroyo Services and Easy Load Network received payments of Rs 7.4 crore and Rs 2.5 crore respectively. The agency alleged that funds were subsequently routed back to accounts linked to members of the syndicate and siphoned off through bogus invoices.
