U.Sudhakarreddy@timesofindia.comHyderabad: Enforcement Directorate on Thursday arrested alleged mastermind Kesireddy Rajashekhar Reddy and former Andhra Pradesh State Beverages Corporation Limited (APSBCL) managing director Dontireddy Vasudeva Reddy after conducting searches in connection with its money laundering probe into the alleged liquor transport scam in AP.ED has alleged that the accused manipulated the state’s liquor transportation tender process, causing a wrongful loss of about Rs 195 crore to the govt exchequer while generating unlawful gains for themselves and their associates.The searches were conducted at five locations in Hyderabad and AP as part of an Enforcement Case Information Report (ECIR) registered on May 22 to investigate alleged irregularities in the APSBCL transport tender.Searches were carried out at premises linked to former AP civil supplies minister Karumuri Nageswara Rao, his son Karumuri Sunil Kumar, Kesireddy, Vasudeva Reddy, his brother-in-law Vijay Narasimha Reddy and Vallu Sandeep.ED teams searched Kesireddy’s residence at Ekta Highland Apartments in Nanakramguda, Hyderabad, and Vasudeva Reddy’s residence at My Home Escape. Searches were also conducted at the premises of Narasimha Reddy in Kokapet and at locations linked to Sandeep, whom ED sources described as a mediator associated with Sri Sudarshan Firm.According to the search report, no seizures were made from the premises of Kesireddy, Vasudeva Reddy and Narasimha Reddy. However, ED seized Rs 9 lakh in cash from Sandeep.From premises linked to Nageswara Rao and Sunil, the agency seized two Rolex watches, a Range Rover car, a mobile phone containing chats related to the exchange of pictures of currency notes for hawala transactions, loose documents and a copy of a joint venture agreement. ED alleged that the watches and the vehicle were purchased using proceeds of crime.ED sources alleged that Sudarshan Firm received about Rs 68 crore. The agency further claimed that Nageswara Rao and his son received Rs 15 crore through cash and banking channels from members of the liquor syndicate involved in the transportation scam.Tender at inflated ratesThe ED probe centred on the transportation of liquor from depots to govt retail outlets across AP. The agency is examining a centralised liquor transportation tender floated by APSBCL under the leadership of then managing director Vasudeva Reddy.According to ED, APSBCL issued a centralised open tender on Oct 10, 2020, for liquor transportation across the state. The contract was awarded at Rs 33 per case per kilometre, with the first year’s value estimated at around Rs 73 crore. Before the centralised system was introduced, transportation was reportedly handled on a depot-wise basis.The agency alleged that the tender was awarded to Delhi-based Sigma Supply Chain Solutions Private Ltd under a secret revenue sharing arrangement. ED sources said Sigma participated in the tender process and was allegedly used as a front entity. However, ED clarified that no individuals associated with Sigma have been accused of involvement in the alleged scam.ED, however, alleged that while Sigma was the prime contractor on paper, the actual transportation operations were carried out by entities and individuals linked to the syndicate. According to the agency, 95% to 96% of the revenue generated under the arrangement was retained by the syndicate, while Sigma kept around 4% for acting as the principal contractor and providing technical facilitation.According to ED, TEKKR was a non-existent company. The agency alleged that TEKKR, controlled by syndicate member T Eeswar Kiran Kumar Reddy handled manpower and local logistics. ED said Kiran Kumar was a close associate of Kesireddy and used his contacts to facilitate operations. The agency added that two persons identified as Sai and Eeswar are absconding.ED alleged that Vasudeva Reddy, in connivance with members of the syndicate, misused his official position to float and award the tender to a front entity at inflated rates. The agency also claimed that several MLAs were linked to the arrangement.Funds thru shell firmsThe agency further alleged that a portion of the funds was diverted through shell companies, routed into real estate ventures and layered through multiple entities to conceal the proceeds of crime. ED described the transportation arrangement as an additional mechanism through which the syndicate allegedly generated and laundered money, apart from the main liquor scam.According to ED, companies, including Arroyo Services and Easy Load Network, received payments of Rs 7.4 crore and Rs 2.5 crore, respectively. It alleged that these funds were subsequently routed back to accounts linked to syndicate members and siphoned off through bogus invoices.
