The ongoing investigation into the alleged Andhra Pradesh liquor scam, in which authorities suspect a loss of Rs 200–400 crore to the state exchequer, has widened to include a former minister, several YSRCP leaders, and their family members.
According to investigators, the newly named accused include YSRCP leader and former minister Karumuri Nageswara Rao, his son Karumuri Sunil, daughter-in-law Keerthi, and Chittoor constituency YSRCP in-charge M.C. Vijayananda Reddy, who has also been described as a red sandalwood smuggler. Narasimha Reddy, son-in-law of then YSRCP leader Samineni Udayabhanu and brother-in-law of the then managing director of the Andhra Pradesh State Beverages Corporation Limited (APSBCL) D. Vasudeva Reddy, has also been named as an accused.
The main accused in the case include Raj Kesireddy, his associates Buneti Chanakya and Tutekula Eshwar Kiran Kumar Reddy, along with former APSBCL managing director D. Vasudeva Reddy and others. Their alleged roles surfaced during the investigation by the Vigilance and Enforcement Department.
Officials said that earlier, the contract for supplying liquor from APSBCL depots to government shops was decided by district-level committees headed by joint collectors, with contractors receiving Rs 13 per liquor case for transportation. However, the probe revealed that the prime accused allegedly manipulated the process between 2020 and 2022.
Investigators claim that Raj Kesireddy, along with close associate Kiran Kumar Reddy and Vasudeva Reddy, ensured that transport contracts were awarded to their firms—Sigma Logistics in Delhi and later Prasad Transport in Vellore. The system was centralised, and transport charges were increased to Rs 34 per case.
Although the companies’ names appeared on paper, officials allege that the key accused controlled operations behind the scenes. The subcontract was reportedly handed over to Karumuri Sunil, son of former minister Karumuri Nageswara Rao, who later contested the Eluru Lok Sabha seat on a YSRCP ticket.
Sunil allegedly set up an office in Hyderabad and further distributed subcontracts for liquor transport to YSRCP leaders in different districts. Vigilance investigators said that financial records showed money being deposited into the accounts of Sunil and his family from Sigma Logistics, following which they were named as accused.
Investigators also found that Narasimha Reddy allegedly played a key role on behalf of Vasudeva Reddy. In the Rayalaseema region, Chittoor YSRCP in-charge M.C. Vijayananda Reddy was accused of forcibly taking over operations from Nikhilananda Logistics.
The vigilance probe has indicated that liquor transport contracts and subcontracts were allegedly distributed among YSRCP leaders and their relatives across districts. In the Guntur region, there are allegations that subcontracts were awarded to a ‘benami’ company linked to former minister Ambati Rambabu. In the Uttarandhra region, contracts were allegedly given to associates of the nephew of then minister Botsa Satyanarayana, who also served as Vizianagaram Zilla Parishad chairman.
Investigations into the alleged scam are ongoing, and officials have not ruled out further action as more financial transactions come under scrutiny.
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