ED arrests former Minister Karumuri Nageswara Rao in liquor transport scam

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Former Civil Supplies Minister and YSR Congress Party leader Karumuri Venkata Nageswara Rao. | Photo Credit: File photo

Officials of the Enforcement Directorate (ED) arrested former Civil Supplies Minister and YSR Congress Party leader Karumuri Venkata Nageswara Rao in connection with the alleged liquor transport scam on Sunday.

An ED team picked up Mr. Nageswara Rao from his residence in Kondapur, Hyderabad, and questioned him in connection with the case.

The case relates to alleged irregularities in the transportation of liquor during the previous YSRCP government. The investigation agency is probing alleged money laundering in the ₹195-crore liquor transport scam.

The investigating officers had earlier arrested Mr. Nageswara Rao’s son, K. Sunil Kumar, former A.P. State Beverages Corporation Limited Managing Director Vasudeva Reddy and former IT Adviser to the government Kasireddy Rajashekar Reddy.

The investigation has revealed, according to the agency, that the YSRCP government paid around ₹35 per kilometre for transporting liquor, against the prevailing rate of ₹13 per kilometre. The ED has also alleged large-scale irregularities in the award of tenders for liquor transportation.

Mr. Nageswara Rao, the fourth accused in the case, is likely to be produced before a court on Monday after questioning, sources said.

Meanwhile, former Ministers Chelluboyina Venugopala Krishna, Anil Kumar Yadav and Vidadala Rajini condemned the arrest, describing it as an act of political vendetta by the TDP-led coalition government.

In a joint statement, they alleged that a false case had been foisted on YSRCP leaders and that Mr. Nageswara Rao, a senior BC leader, was unfairly arrested in Hyderabad over alleged irregularities in liquor transportation. They said Mr. Nageswara Rao’s son had also been arrested earlier and alleged that the entire family was being targeted.

The former Ministers maintained that liquor procurement and sales during the YSRCP government were carried out transparently. They, in turn, alleged that serious irregularities had taken place during the Chandrababu Naidu government between 2014 and 2019.

They alleged that the then government had scrapped privilege fees to benefit bars, purchased liquor from select distilleries and allowed TDP-linked syndicates to dominate liquor shops. Belt shops and permit rooms had flourished and liquor was allegedly sold above the maximum retail price, they said.

The former Ministers said a case had subsequently been registered against Mr. Naidu over alleged irregularities in liquor procurement and sales.

They demanded an end to what they described as the targeting of BC leaders and YSRCP functionaries and warned that the people would give the coalition government a fitting response if the alleged political vendetta continued.