The Enforcement Directorate (ED) on Monday alleged that former Andhra Pradesh minister and YSRCP leader K Venkata Nageswara Rao and his son, Sunil Kumar, “utilised” proceeds of crime from a liquor-transport “scam” to buy luxury assets, including high-end vehicles and watches, besides using the money for political funding and personal and family expenses.
There was no immediate reaction from Rao, Kumar or the YSRCP, which is headed by former chief minister Y S Jagan Mohan Reddy.
In a statement, the ED alleged that “the proceeds of crime (of the alleged scam) were utilised by Karumuri Venkata Nageswara Rao and Karumuri Sunil Kumar for acquisition of luxury assets, including high-end motor vehicles and luxury watches, payment of advances towards purchase of immovable properties, political funding, and meeting various personal and family-related expenditures through direct banking transfers and cash transactions”.
Kessireddy Raja Shekhar Reddy and Dontireddy Vasudeva Reddy have also been arrested by the ED and are currently in jail under judicial custody, along with the former minister and his son. The ED alleged that the companies acted as front entities, while the actual operational and financial control remained with persons linked to Kessireddy Raja Shekhar Reddy, Dontireddy Vasudeva Reddy and their associates.
The father-son duo exercised “substantial” control over the allotment of liquor transportation sub-contracts and made “significant” illicit financial gains from them, according to the agency. The agency said its investigation found that the liquor-transport tender conditions of the APSBCL were “deliberately” modified and tailored to favour selected entities, Sigma Supply Chain Solutions Private Limited (SSCSPL) and later Prasaad Transports.
