The Enforcement Directorate (ED) on Monday alleged that former Andhra Pradesh minister and YSRCP leader K Venkata Nageswara Rao and his son, Sunil Kumar, “utilised” proceeds of crime from a liquor-transport “scam” to buy luxury assets, including high-end vehicles and watches, besides using the money for political funding and personal and family expenses.
Rao, 61, was arrested by the ED on August 23 after being accused of acting as a “key facilitator” in the alleged “scam”. A special court in Hyderabad sent him to 15 days’ judicial custody on Sunday, news agency PTI reported.
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Kumar and Rao arrested
Kumar was arrested by the central agency in June over his alleged role in the ₹195.33 crore transportation “scam” involving the Andhra Pradesh State Beverages Corporation Limited (APSBCL).
In a statement, the ED alleged that “the proceeds of crime (of the alleged scam) were utilised by Karumuri Venkata Nageswara Rao and Karumuri Sunil Kumar for acquisition of luxury assets, including high-end motor vehicles and luxury watches, payment of advances towards purchase of immovable properties, political funding, and meeting various personal and family-related expenditures through direct banking transfers and cash transactions”.
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Funds projected as ‘genuine’ business income
The agency further alleged that the father-son duo projected the funds as “genuine” business income.
There was no immediate reaction from Rao, Kumar or the YSRCP, which is headed by former chief minister Y S Jagan Mohan Reddy.
The ED alleged that Rao and his son used their “political influence” and close ties with members of the liquor-transportation syndicate, including prime accused Kessireddy Raja Shekhar Reddy, Tukekula Eswar Kiran Kumar Reddy and former APSBCL managing director Dontireddy Vasudeva Reddy.
According to the agency, the father-son duo exercised “substantial” control over the allotment of liquor transportation sub-contracts and made “significant” illicit financial gains from them.
Kessireddy Raja Shekhar Reddy and Dontireddy Vasudeva Reddy have also been arrested by the ED and are currently in jail under judicial custody, along with the former minister and his son.
The agency said its investigation found that the liquor-transport tender conditions of the APSBCL were “deliberately” modified and tailored to favour selected entities, Sigma Supply Chain Solutions Private Limited (SSCSPL) and later Prasaad Transports. The ED alleged that the companies acted as front entities, while the actual operational and financial control remained with persons linked to Kessireddy Raja Shekhar Reddy, Dontireddy Vasudeva Reddy and their associates.
The agency further alleged that Rao and his son arranged a “dummy sub-contractor” company of SSCSPL for liquor transportation, while the actual movement of liquor was carried out by other entities arranged by the duo.
The ED also alleged that illicit funds were transferred to Rao’s personal bank accounts and those of his family members.
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