ED Reveals AP Liquor Scam Funds Used for Luxury Goods, Properties

The Enforcement Directorate (ED) has disclosed that proceeds from the Andhra Pradesh liquor transportation scam were allegedly diverted towards luxury watches, expensive vehicles, real estate, and political funding. The agency's latest findings focus on former Andhra Pradesh minister Karumuri Venkata Nageswara Rao and his son Karumuri Sunil Kumar, both accused of benefiting from irregularities in liquor transportation contracts during the previous YSRCP government.

According to the ED, the scam centers around the Andhra Pradesh State Beverages Corporation Limited (APSBCL), where contract terms were reportedly altered to favor certain companies. These companies secured transportation deals at rates much higher than standard, resulting in a reported loss of ₹195.33 crore to the state exchequer.

The ED alleges that Karumuri Nageswara Rao and his son leveraged their political influence to control the allocation of transportation sub-contracts. Sree Sudarsana Constructions was named as a dummy sub-contractor, with the actual transportation work carried out by other entities. The agency claims that inflated invoices were generated in Sree Sudarsana Constructions' name, enabling funds to be funneled into the company's accounts and subsequently transferred to the personal accounts of Karumuri and his family.

Investigators say that the siphoned funds were used for personal luxuries, including high-end watches, premium cars, and immovable properties, as well as for political expenses. The ED has already attached properties worth ₹37.79 crore and arrested several individuals, including Karumuri Nageswara Rao, his son, and others. Nageswara Rao was remanded to 15 days judicial custody after being produced before the Special PMLA Court in Hyderabad on August 24. The investigation is ongoing.