ED arrests Raj Kesireddy, main accused in Andhra Pradesh's ₹4,000 crore liquor scam
Synopsis
The ED's arrest of Raj Kesireddy — the alleged kingpin of Andhra Pradesh's liquor scam and a former aide to ex-CM Jagan Mohan Reddy — marks a sharp federal escalation. With a ₹4,000 crore exchequer loss alleged, a ₹1,048 crore money trail identified, and ₹441 crore in assets already frozen, this case is shaping into one of the largest state-level financial fraud probes in recent memory.
Key Takeaways
The Enforcement Directorate arrested Raj Kesireddy on 11 June 2026 in connection with the Andhra Pradesh liquor scam .
Searches were conducted at 10 locations in Hyderabad , Andhra Pradesh , and Telangana .
The ED has traced a money trail of ₹1,048.45 crore in alleged kickbacks paid in cash and gold.
Properties worth ₹441.63 crore were attached under the PMLA, 2002 in March 2026 .
The alleged loss to the state exchequer is estimated at ₹4,000 crore , per the original CID complaint.
Raj Kesireddy had been granted bail by the Andhra Pradesh High Court on 7 April 2026 after an earlier SIT arrest in 2025 .
The Enforcement Directorate (ED) on Thursday, 11 June arrested Kesireddy Rajasekhara Reddy, also known as Raj Kesireddy, the principal accused in the multi-crore liquor scam linked to the alleged irregularities during the YSR Congress Party (YSRCP) government's tenure in Andhra Pradesh. The arrest followed coordinated searches at 10 locations across Hyderabad and other parts of Andhra Pradesh and Telangana.
Who Is Raj Kesireddy
Raj Kesireddy is a former advisor to ex-Chief Minister Y.S. Jagan Mohan Reddy and is at the centre of the ₹349 crore liquor transport scam. He had earlier been arrested by the Special Investigation Team (SIT) of the Andhra Pradesh CID in 2025, before the Andhra Pradesh High Court granted him bail on 7 April 2026. Thursday's ED arrest marks a fresh escalation in the federal agency's parallel money-laundering probe.
Search Operations and Key Targets
ED officials conducted searches at Raj Kesireddy's residence in Nanakramguda and at premises linked to six other accused across Hyderabad. Searches also covered the residences of former civil supplies minister Karumuri Nageswara Rao, his son Karmuri Sunil Kumar, former Managing Director of AP State Beverages Corporation Limited Donthireddy Vasudeva Reddy, and his relative Narasimha Reddy.
In a related operation in April 2026, the ED had searched the premises of YSRCP leader and former MLA Chevireddy Bhaskar Reddy, Bharati Cements director Balaji Govindappa, Krishna Mohan, and Dhanunjaya Reddy in Hyderabad, Vijayawada, and Tirupati.
Scale of the Alleged Scam
The ED's investigation — based on an FIR filed by the Andhra Pradesh CID on a complaint from the Principal Secretary to the Government of Andhra Pradesh — estimates the total loss to the state exchequer at ₹4,000 crore. According to the agency, its probe has uncovered a money trail of ₹1,048.45 crore in kickbacks.
Investigators allege that physical cash kickbacks were collected and stored at multiple locations in Hyderabad before being moved, distributed, or disposed of by designated cash handlers of the alleged syndicate. Numerous distilleries were reportedly compelled to make payments in cash and gold, and the syndicate allegedly exercised control over certain distilleries to extract financial benefits from liquor transportation.
Properties Attached Under PMLA
In March 2026, the ED attached movable and immovable properties worth ₹441.63 crore belonging to Raj Kesireddy, his family members, and related entities, as well as properties linked to Booneti Chanakya, relatives and entities of Donthireddy Vasudeva Reddy, and others under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The agency's investigation is proceeding on the basis of the SIT's report.
What Comes Next
Raj Kesireddy is expected to be produced before a designated PMLA court for remand. With properties worth over ₹441 crore already attached and a money trail exceeding ₹1,000 crore identified, legal observers expect further arrests and asset seizures as the federal probe widens. The case is being closely watched as a test of accountability for alleged financial misconduct during the previous YSRCP administration.
Point of View
000 crore exchequer loss alleged, a ₹1,048 crore money trail already documented, and ₹441 crore in assets frozen — yet the core accused had been walking free on bail. The hawala and cash-handler network described in the ED's findings suggests systemic, not opportunistic, corruption. The real accountability test will come at trial, where money-trail evidence must survive judicial scrutiny.
NationPress
27 Jul 2026
Frequently Asked Questions
Who is Raj Kesireddy and why was he arrested?
Raj Kesireddy (Kesireddy Rajasekhara Reddy) is a former advisor to ex-Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy and the principal accused in the state's multi-crore liquor scam. The ED arrested him on 11 June 2026 under the Prevention of Money Laundering Act following searches at 10 locations in Hyderabad and Andhra Pradesh.
What is the Andhra Pradesh liquor scam?
The Andhra Pradesh liquor scam refers to alleged financial irregularities in the state's liquor distribution and transportation system during the YSRCP government's tenure. The Andhra Pradesh CID filed an FIR citing a loss of ₹4,000 crore to the state exchequer, and the ED subsequently launched a parallel money-laundering investigation.
How much money has the ED traced in the liquor scam?
The ED has identified a money trail of ₹1,048.45 crore in alleged kickbacks. Investigators allege that distilleries were forced to pay in cash and gold, and that funds were routed through hawala channels and cash handlers operating across multiple Hyderabad locations.
What properties has the ED attached in this case?
In March 2026, the ED attached movable and immovable properties worth ₹441.63 crore belonging to Raj Kesireddy, his family, Booneti Chanakya, Donthireddy Vasudeva Reddy, and related entities under the PMLA, 2002.
Had Raj Kesireddy been arrested before this ED action?
Yes. Raj Kesireddy was first arrested by the Andhra Pradesh CID's Special Investigation Team in 2025. The Andhra Pradesh High Court granted him bail on 7 April 2026. Thursday's ED arrest is a separate action under money-laundering provisions and is independent of the state CID case.
