Kadapa MP Y.S. Avinash Reddy on Wednesday, 14 October appeared before the Enforcement Directorate (ED) at its regional office in Hyderabad for questioning over alleged financial transactions linked to the 2019 murder of his uncle, former Andhra Pradesh minister Y.S. Vivekananda Reddy. The YSR Congress Party (YSRCP) legislator is the eighth accused (A8) in the case and was summoned by the Central agency in connection with its money laundering probe.

Questioning a Day After Father's Appearance

Avinash Reddy's appearance before the ED comes a day after his father, Y.S. Bhaskar Reddy — listed as the sixth accused (A6) — was questioned by the same agency. The ED is probing an alleged ₹40 crore contract killing conspiracy, scrutinising financial transactions made by all accused persons before and after the murder of Vivekananda Reddy.

Earlier in the week, Devireddy Shiva Shankar Reddy (A5) had appeared before the ED on Monday. In recent days, the Central agency also questioned Yerra Gangi Reddy, Uma Shankar Reddy, Sunil Yadav, and Shaik Dastagiri — an accused who has since turned approver — as part of the same financial probe.

The Viveka Murder: Background

Y.S. Vivekananda Reddy, a former Andhra Pradesh minister and brother of the late Chief Minister Y.S. Rajasekhara Reddy, was murdered at his residence in Pulivendula on 15 March 2019, weeks before state elections. The 68-year-old, who was alone at home at the time, was killed by unidentified intruders. He was also the uncle of former Chief Minister and YSRCP president Y.S. Jagan Mohan Reddy, making Avinash Reddy the latter's cousin.

The Central Bureau of Investigation (CBI) took over the case in 2020 following directions from the Andhra Pradesh High Court, which was hearing a petition filed by Vivekananda Reddy's daughter, Sunitha Reddy, who had raised suspicions about certain relatives. The CBI filed its first charge sheet in 2021, followed by supplementary charge sheets in 2022 and 2023. In 2023, it arrested Bhaskar Reddy and his associate Uday Kumar Reddy.

ED's Money Laundering Probe: Key Details

The ED registered an Enforcement Case Information Report (ECIR) in August 2024, basing its money laundering investigation on the CBI's case and charge sheets. The agency is specifically examining an alleged transfer of ₹4 crore and a reported advance payment of ₹1 crore to Shaik Dastagiri, who has since become an approver. Dastagiri reportedly claimed that Shiva Shankar Reddy had promised ₹40 crore for the killing.

Last month, the ED carried out searches at multiple locations linked to Avinash Reddy, Bhaskar Reddy, and other accused. During those searches, the agency reportedly seized unaccounted cash of ₹24 lakh from premises connected to Avinash Reddy.

Political and Legal Significance

The ED's systematic questioning of accused persons — now covering at least eight individuals in a matter of days — signals an acceleration of the financial investigation running parallel to the CBI's criminal probe. Notably, this is the second consecutive day that a prominent accused linked to the Reddy family has been summoned, underscoring the agency's focus on alleged money trails in what it terms a contract murder conspiracy.

As the probe deepens, attention will turn to whether the ED moves to file a formal complaint under the Prevention of Money Laundering Act (PMLA) based on the financial evidence gathered during these rounds of questioning.