The Directorate of Enforcement (ED) on Thursday, 18 June arrested Karumuri Sunil Kumar in connection with the transport scam linked to the Andhra Pradesh liquor scam, marking the latest in a series of arrests under the Prevention of Money Laundering Act (PMLA). Sunil Kumar is the son of Karumuri Nageswara Rao, former Civil Supplies minister in the YSR Congress Party (YSRCP) government.

Remand and Custody

Following his arrest, Sunil Kumar was produced before the Special Court (PMLA) in Hyderabad, which remanded him to judicial custody for 14 days. He was subsequently transferred to Chanchalguda Central Jail. During arguments, the Public Prosecutor told the court that Nageswara Rao, by virtue of his ministerial position, had allegedly secured lucrative liquor transport sub-contracts for his business associates. The ED contended that Sunil Kumar and his associates had derived unlawful pecuniary gains through these arrangements.

Earlier Arrests and Searches

The arrest follows ED searches last week at five premises in Hyderabad belonging to Kesireddy Rajashekhar Reddy (alias Raj Kesireddy), Dontireddy Vasudeva Reddy, Vijaya Narasimha Reddy, Vallu Sandeep, Karumuri Nageswara Rao, and Karumuri Sunil Kumar. Those searches were conducted under PMLA provisions and led to the seizure of a luxury car, costly watches valued at ₹94.5 lakh, and unaccounted cash. Investigators also recovered incriminating documents including suspicious joint venture agreements, unaccounted cash transaction records, and property documents.

Separately, the ED's Hyderabad Zonal Office had arrested Raj Kesireddy, former IT Advisor to the Government of Andhra Pradesh, and Vasudeva Reddy, former Managing Director of the Andhra Pradesh State Beverages Corporation Ltd. (APSBCL). Both were produced before the Special Court (PMLA), which sent them to judicial custody until 25 June.

How the Scam Allegedly Operated

According to the ED, Raj Kesireddy emerged as the principal conspirator and the controlling mind behind the alleged financial crime. He reportedly leveraged his political influence and his former position as IT Advisor to enter into a criminal conspiracy with Vasudeva Reddy and associate Tukekula Eswar Kiran Kumar Reddy to subvert APSBCL's established transportation policy framework.

Investigators allege that liquor transport tender conditions were deliberately modified and tailored to favour selected entities — namely Sigma Supply Chain Solutions Pvt. Ltd. (SSCSPL) and subsequently Prasad Transports — which allegedly acted as front companies. The actual operational and financial control, according to the ED, remained with persons associated with Kesireddy, Vasudeva Reddy, and their network. The cartel is alleged to have generated unlawful gains through the transportation of liquor from depots to retail outlets across Andhra Pradesh.

Scale of Alleged Exchequer Loss

The ED initiated its probe on the basis of an FIR registered by the CID, Andhra Pradesh, under various sections of the IPC and the BNS, following a complaint by the Additional Secretary to the Government of Andhra Pradesh (Vigilance). The complaint alleged a loss to the government exchequer of ₹195.33 crore. This is the third major PMLA arrest in the case within a fortnight, signalling an accelerating pace of enforcement action.

With multiple accused now in judicial custody and further investigation ongoing, the case is expected to widen as ED traces the money trail through the alleged front entities.