Hyderabad | The Enforcement Directorate (ED) has arrested Karumuri Sunil Kumar, son of former Andhra Pradesh Civil Supplies Minister Karumuri Nageswara Rao, in connection with an alleged liquor transportation scam linked to contracts awarded by the Andhra Pradesh State Beverages Corporation Limited (APSBCL). The arrest marks a significant escalation in the central agency’s ongoing investigation into suspected irregularities involving public procurement and transport contracts.
According to officials, the case pertains to alleged manipulation of liquor transportation tenders, which were reportedly structured to favour select private entities. Investigators claim that the irregular award and extension of contracts resulted in an estimated loss of ₹195.33 crore to the state exchequer. The agency is examining whether a coordinated syndicate influenced the bidding process and benefited from inflated transportation rates.
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The ED had conducted searches at multiple locations on June 11, including premises linked to the accused, his family members, and other individuals associated with the case. During these operations, the agency reportedly seized luxury vehicles, high-value wristwatches worth approximately ₹94.5 lakh, cash, and several documents related to financial transactions and property holdings. These materials are now part of the ongoing forensic and financial analysis.
Officials stated that the investigation focuses on the alleged misuse of contractual processes within APSBCL, where transport tenders were allegedly awarded in a manner that lacked transparency and competitive fairness. The agency suspects that certain firms were systematically favoured, enabling them to secure repeated contracts at inflated rates, thereby generating illicit financial gains.
The arrest of Sunil Kumar follows earlier enforcement actions in the same case, including the detention of Raj Kesireddy and former APSBCL Managing Director D. Vasudeva Reddy. Their arrests had already indicated the widening scope of the investigation into alleged corruption and financial irregularities within the liquor transport supply chain.
Sources within the investigating agency indicated that the probe is not limited to contract allocation but also extends to the flow of funds generated through these agreements. Authorities are examining whether proceeds from the alleged scam were routed through intermediary entities, invested in movable and immovable assets, or laundered through complex financial structures to obscure their origin.
Investigators are also reviewing digital records, banking transactions, and contractual documentation obtained during the searches. The objective is to reconstruct the entire chain of tender allocation, execution of transport contracts, payment disbursement, and alleged kickbacks. Officials believe that a detailed audit trail will help establish the extent of financial irregularities and identify all individuals involved in the network.
The ED has not ruled out further arrests as the investigation progresses. Officials said that additional individuals connected to the bidding process, contracting firms, and administrative approvals may come under scrutiny depending on the evidence gathered. The agency is also coordinating with other investigative bodies to verify procedural compliance in the award of transport contracts.
Legal experts note that cases involving alleged manipulation of public procurement processes often require extensive documentation review and cross-verification of financial records to establish criminal intent and quantifiable loss to the state. The ongoing investigation is expected to focus on both procedural violations and the movement of funds across linked accounts and entities.
The investigation remains active, and authorities have stated that all findings are preliminary at this stage. The determination of guilt or innocence will depend on the outcome of the probe and subsequent judicial proceedings.
