Andhra liquor scam: ED seizes luxury car, expensive watches during searches
Hyderabad, June 12 : Searches conducted by Directorate of Enforcement (ED) in Hyderabad on Thursday in connection with the transport scam linked to Andhra Pradesh liquor scam led to seizure of a luxury car, costly watches valued at Rs 94.5 lakh and unaccounted cash.
Incriminating documents including suspicious joint venture agreements, unaccounted cash transactions, property documents were recovered and seized, ED said in a release on Friday.
The Central agency conducted searches under the provisions of the Prevention of Money Laundering Act (PMLA) at five premises of Kesireddy Rajashekhar Reddy alias Raj Kesireddy, Dontireddy Vasudeva Reddy, Vijaya Narasimha Reddy, Vallu Sandeep and Karumuri Nageswara Rao and Karumuri Sunil Kumar
Based on the investigation conducted so far, ED Hyderabad Zonal Office arrested former IT advisor to the government of Andhra Pradesh, Raj Kesireddy and former Managing Director Andhra Pradesh State Beverages Corporation Ltd. (APSBCL) Vasudeva Reddy under the provisions of PMLA, 2002. Both were produced before the Special Court (PMLA), which sent them to judicial custody till June 25.
ED investigation revealed that Kessireddy emerged as the principal conspirator and controlling mind behind the organized financial crime relating to the manipulation of liquor transportation tenders floated by APSBCL.
It has emerged that, by leveraging his political influence and by utilizing his position and influence as former IT Advisor to the Government of Andhra Pradesh, he entered into a criminal conspiracy with the then Managing Director of APSBCL, Vasudeva Reddy, and his close associate, Tukekula Eswar Kiran Kumar Reddy, for the purpose of subverting the established transportation policy framework of APSBCL and deriving unlawful pecuniary gains therefrom.
ED said that it initiated investigation on the basis of FIR registered by CID, Andhra Pradesh under various sections of IPC and the BNS on the basis of complaint of Additional Secretary to Government of Andhra Pradesh (Vigilance), for loss to the Government exchequer to the tune of Rs. 195.33 crore.
ED investigation revealed that the liquor transport tender conditions of APSBCL were deliberately modified and tailored in favour of selected entities, namely Sigma Supply Chain Solutions Pvt. Ltd. (SSCSPL) and subsequently Prasad Transports, which acted merely as front entities while the actual operational and financial control remained with persons associated with Kesireddy, Vasudeva Reddy and their associates.
ED investigation further revealed that the liquor cartel devised a mechanism to generate unlawful gains through the transportation of liquor from depots to retail outlets in Andhra Pradesh.
Kesireddy, Tukekula Eswar Kiran Kumar Reddy and Anjani Kumar, in active connivance with Vasudeva Reddy, the then Managing Director of APSBCL, abused their influence to secure liquor transportation tender at rates substantially higher than the prevailing rates, thereby generating proceeds of crime.
The investigation revealed that SSCSPL was used as a front entity to participate in the tender process and to obtain the contract through manipulated tender process. However, the actual execution and operational control of the transportation work was carried out by Kiran Kumar Reddy and his associates, who functioned under the direct supervision and control of Kesireddy.