Andhra liquor scam: ED seizes luxury car, watches worth ₹94.5 lakh in Hyderabad raids
Synopsis
The ED's Hyderabad raids in the Andhra Pradesh liquor transport scam have netted a luxury car, watches worth ₹94.5 lakh, and a paper trail pointing to a ₹195.33 crore exchequer loss. With a former state IT advisor named as the alleged mastermind and two accused already in judicial custody, this case is rapidly expanding into one of the more significant financial crime probes in recent Andhra Pradesh history.
Key Takeaways
ED searched five premises in Hyderabad on 12 June , seizing a luxury car, watches worth ₹94.5 lakh , and unaccounted cash.
Former AP IT Advisor Raj Kesireddy and former APSBCL MD Vasudeva Reddy were arrested under PMLA and remanded to judicial custody till 25 June .
ED alleges tender conditions were manipulated to favour front entities SSCSPL and Prasad Transports , generating unlawful proceeds.
The alleged loss to the government exchequer stands at ₹195.33 crore , per the original CID complaint.
Incriminating documents including suspicious joint venture agreements and property papers were also recovered.
The Directorate of Enforcement (ED) on Thursday, 12 June conducted searches across five premises in Hyderabad linked to the Andhra Pradesh liquor transport scam, seizing a luxury car, expensive watches valued at ₹94.5 lakh, and unaccounted cash. The raids, carried out under the Prevention of Money Laundering Act (PMLA), also yielded incriminating documents including suspicious joint venture agreements, unaccounted cash transaction records, and property papers.
Who Was Targeted
Searches were conducted at premises linked to Kesireddy Rajashekhar Reddy (alias Raj Kesireddy), Dontireddy Vasudeva Reddy, Vijaya Narasimha Reddy, Vallu Sandeep, Karumuri Nageswara Rao, and Karumuri Sunil Kumar. The ED's Hyderabad Zonal Office had previously arrested Raj Kesireddy — a former IT advisor to the government of Andhra Pradesh — and Vasudeva Reddy, former Managing Director of the Andhra Pradesh State Beverages Corporation Ltd. (APSBCL), under PMLA provisions. Both were produced before the Special Court (PMLA), which remanded them to judicial custody until 25 June.
The Alleged Conspiracy
According to the ED, Raj Kesireddy emerged as the principal conspirator and the controlling mind behind the organised financial crime. The agency alleges he leveraged his political influence and his former position as IT Advisor to the Andhra Pradesh government to enter into a criminal conspiracy with Vasudeva Reddy and close associate Tukekula Eswar Kiran Kumar Reddy. The alleged objective was to subvert APSBCL's established transportation policy framework for unlawful financial gain.
How the Scam Allegedly Worked
ED investigation revealed that liquor transport tender conditions of APSBCL were deliberately modified and tailored to favour two entities: Sigma Supply Chain Solutions Pvt. Ltd. (SSCSPL) and, subsequently, Prasad Transports. Both allegedly functioned as front companies, with actual operational and financial control resting with persons associated with Kesireddy, Vasudeva Reddy, and their associates. The cartel reportedly secured transportation contracts at rates substantially higher than prevailing market rates, generating what the agency describes as proceeds of crime. SSCSPL was used to participate in the tender process, while the actual execution was carried out by Kiran Kumar Reddy and his associates under the direct supervision of Kesireddy, according to the ED.
Scale of the Alleged Loss
The ED initiated its investigation 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 cited a loss to the government exchequer of ₹195.33 crore. This is the latest in a series of enforcement actions in the case, with the investigation continuing to widen in scope.
What Comes Next
Both arrested accused remain in judicial custody until 25 June, and further searches or arrests cannot be ruled out as the ED pursues the money trail. The case is being closely watched as it implicates a former government advisor and a senior public sector official, raising questions about oversight mechanisms within APSBCL and liquor procurement policy in Andhra Pradesh.
Point of View
But for who is implicated — a former IT advisor with direct access to state government machinery and a public sector MD. The use of front companies to capture inflated transport contracts is a textbook money-laundering structure, yet it reportedly went unchecked long enough to cost the exchequer over ₹195 crore. This raises pointed questions about internal audit mechanisms within APSBCL and whether the vigilance complaint came too late. With judicial custody running only until 25 June, the pace of the ED's money-trail probe in the coming weeks will determine how deep the political linkages actually run.
NationPress
9 Aug 2026
Frequently Asked Questions
What did the ED seize during the Hyderabad raids in the Andhra Pradesh liquor scam?
The ED seized a luxury car, expensive watches valued at ₹94.5 lakh, unaccounted cash, and incriminating documents including suspicious joint venture agreements, property papers, and unaccounted cash transaction records. The searches were conducted at five premises on 12 June under PMLA provisions.
Who has been arrested in the Andhra Pradesh liquor transport scam?
The ED has arrested Raj Kesireddy, former IT advisor to the Andhra Pradesh government, and Vasudeva Reddy, former Managing Director of APSBCL, under the Prevention of Money Laundering Act (PMLA). Both have been sent to judicial custody until 25 June by the Special Court (PMLA).
What is the alleged loss to the exchequer in the Andhra Pradesh liquor scam?
The loss to the government exchequer is pegged at ₹195.33 crore, according to the complaint filed by the Additional Secretary to the Government of Andhra Pradesh (Vigilance), which formed the basis of the original CID FIR.
How did the Andhra Pradesh liquor transport scam allegedly work?
According to the ED, tender conditions for liquor transportation by APSBCL were deliberately modified to favour front entities — Sigma Supply Chain Solutions Pvt. Ltd. and Prasad Transports. Contracts were secured at inflated rates, with actual operational control held by associates of the accused, generating alleged proceeds of crime.
What is APSBCL and what is its role in this case?
APSBCL stands for Andhra Pradesh State Beverages Corporation Ltd., the state-owned body responsible for liquor procurement and distribution in Andhra Pradesh. The ED alleges its transportation tenders were manipulated by its then-MD in conspiracy with a former state IT advisor to benefit select private entities.
