The Enforcement Directorate (ED) on Thursday took into custody three accused in the multi-crore liquor irregularities case that allegedly took place during the previous YSR Congress Party regime in Andhra Pradesh, people familiar with the matter said.
A special PMLA (Prevention of Money Laundering Act) court at Nampally in Hyderabad on Wednesday granted three-day custody of the accused – former advisor to the AP government Kesireddy Rajasekhar Reddy alias Raj Kesireddy, former Andhra Pradesh State Beverages Corporation Limited (APSBCL) managing director D Vasudeva Reddy, and Sunil, son of former minister Karumuri Nageswara Rao.
As per the court’s order, ED took the accused into custody for questioning for three days. “They were shifted from Chanchalguda Central Jail to the ED office for interrogation,” an official familiar with the development said.
TED arrested these three accused on June 11 after day-long raids on their residences and offices and they were produced before the PMLA court, which remanded them to judicial custody.
There were allegations that hundreds of crores changed hands in the liquor case. The central agency reportedly found that funds were diverted through hawala and money laundering channels.
{{/usCountry}}There were allegations that hundreds of crores changed hands in the liquor case. The central agency reportedly found that funds were diverted through hawala and money laundering channels.
{{/usCountry}}ED is investigating on the basis of a report of the special investigation team (SIT). According to ED, its investigations revealed that physical cash kickbacks were collected and stored at multiple locations in Hyderabad, from where they were subsequently moved, distributed, or disposed of by designated cash handlers of the syndicate.
ED investigation had revealed a money trail of ₹1048.45 crore in kickbacks. Numerous distilleries were forced to provide these payments in various forms, including cash and gold, as well as through the control and operation of certain distilleries by the liquor syndicate.
Additionally, financial benefits were obtained from the transportation of liquor. ED is probing the alleged irregularities in the award of liquor transportation contracts. According to the agency, the government suffered an estimated loss of around ₹195 crore after the tender conditions for liquor transportation contracts were allegedly modified in violation of established norms.
During the three-day custodial interrogation, investigators are expected to question the accused on the tender process, financial transactions, fund transfers, and other key aspects of the alleged scam in an effort to gather further evidence.