Hyderabad: The Enforcement Directorate’s probe into the alleged Andhra Pradesh liquor transport scam has traced what it describes as a structured money-laundering network that allegedly moved proceeds of crime from inflated transport bills through shell entities and fake vendors before routing them into domestic and overseas investments, including Dubai.According to ED, funds generated through inflated billing and bogus transportation claims were systematically layered through entities such as Bonvour, Casta Pink, Ezylod Network Pvt. Ltd. and RK Logistics. The agency alleged that these entities were used to conceal the illicit origin of the funds before kickbacks and commissions were distributed among accused persons, their associates and political functionaries.Shell firms, cash conversion used to layer fundsED said a significant portion of the proceeds of crime was integrated into the legitimate economy through DRE Motors Private Limited, a Hyderabad-based company incorporated under the directorship of the relatives of prime accused Kessireddy Raja Shekhar Reddy, also known as Raj Reddy. The company was allegedly owned and controlled by him.
AP liquor scam probe
The probe found that about ₹81 lakh was transferred through Tekkr Exports & Imports Pvt. Ltd. to DRE Motors. ED alleged that routing funds through multiple intermediary entities and bank accounts was part of an attempt to project illicit gains as legitimate business receipts or “untainted property”.The agency also found a cash-conversion mechanism in which funds were transferred to entities, including fuel stations, and returned as cash to members of the liquor syndicate after deducting commission. According to ED, about ₹21 crore was converted into cash and handed over to Marella Vijaya Narasimha Reddy, a relative of former APSBCL managing director Dontireddy Vasudeva Reddy.ED alleged that Vasudeva Reddy, an IRTS officer and former managing director of Andhra Pradesh State Beverages Corporation Limited, received about ₹2.6 crore in cash kickbacks delivered to his residence on 13 occasions. The agency said the deliveries, of around ₹20 lakh each, represented his “share” of illicit income generated from manipulated liquor transportation tenders.The agency further alleged that the liquor syndicate, mainly through Kiran Kumar, a close associate of Raj Reddy, paid rent for Vasudeva Reddy’s personal residence at Myscape Courtyards in Hyderabad. These payments, amounting to about ₹3.5 lakh per month, were allegedly made for nearly two years and continued till March 2024.Dubai investments, tender manipulation under lensThe laundering trail also extended overseas, according to ED. The agency said Kiran Kumar allegedly invested money on behalf of Vasudeva Reddy in overseas destinations, including Dubai, as the former APSBCL MD was interested in investment opportunities for his share of the syndicate’s profits. ED said these arrangements were facilitated through associates of the liquor syndicate to further conceal the origin of the funds and project them as legitimate overseas investments.The investigation has also examined Vasudeva Reddy’s role in the tender process. ED cited statements of APSBCL employees and syndicate-linked accountants to allege that he abused his official position to facilitate the transportation arrangement. One statement claimed that Vasudeva Reddy was specially brought on deputation to the Andhra Pradesh govt between 2019 and 2024 and appointed APSBCL MD to bring the corporation under the control of the liquor syndicate.An, accounts officer at APSBCL stated that Vasudeva Reddy took a “unilateral decision with ulterior motives” to float a centralised tender despite there being no requirement to do so. An officer on special duty at APSBCL told ED that Vasudeva Reddy ignored advice from officers that changing the transportation model required a govt amendment. Despite receiving a letter from the govt advising him to proceed under existing rules, Vasudeva Reddy uploaded the centralised tender notification the same day.Suluru Siva Prasad, deputy general manager, finance and accounts, stated that Vasudeva Reddy proceeded with the centralised tender without consulting the finance department on the estimated contract value. ED also alleged that he manipulated the tender process to benefit his brother-in-law, Marella Vijaya Narasimha Reddy, by facilitating the selection of a front entity, M/s Prasaad Transports, allegedly controlled by him.According to ED, Vasudeva Reddy played a central role as a key conspirator and active participant in money laundering by using his official position to facilitate inflated rates and fraudulent contracts. The agency has estimated wrongful loss to the state exchequer at about ₹195.33 crore.
