ED summons former Andhra Pradesh minister Ambati Rambabu in liquor scam case on November 4

Rambabu has been asked to appear before the ED's Hyderabad zonal office and record his statement in connection with the alleged Andhra Pradesh liquor scam.

The agency's move comes almost nine months after it arrested Karumuri Sunil Kumar, son of former Andhra Pradesh minister Karumuri Venkata Nageswara Rao, in connection with the alleged liquor transport irregularities case being investigated under the Prevention of Money Laundering Act. He was arrested on June 18.

The case is linked to the suspected irregularities in the awarding and execution of liquor transportation contracts during the tenure of the YSR Congress Party government in Andhra Pradesh.

Earlier on June 11, ED's Hyderabad office conducted a search operation under the provisions of the PMLA at five premises in Hyderabad related to the case, covering the premises of Karumuri Sunil Kumar; his father; liquor scam kingpin Kessireddy Raja Shekhar Reddy, former IT advisor to the Andhra Pradesh government; Dontireddy Vasudeva Reddy, former Managing Director of the Andhra Pradesh State Beverages Corporation Limited (APSBCL); Vijaya Narasimha Reddy; and Vallu Sandeep. In the operation, the agency also seized a luxury car, costly watches valued at Rs 94.5 lakh and unaccounted cash. Further incriminating documents, including suspicious joint venture agreements, unaccounted cash transactions, and property documents, were recovered and seized.

On the same day, ED had also arrested Kessireddy Raja Shekhar Reddy and Dontireddy Vasudeva Reddy in the case initiated on the basis of an FIR registered by Andhra Pradesh CID on the basis of a complaint of the 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 Andhra Pradesh State Beverages Corporation Ltd (APSBCL) were deliberately modified and tailored in favour of selected entities, namely Sigma Supply Chain Solutions Pvt Ltd (SSCSPL) and subsequently Prasaad Transports, which acted merely as front entities while the actual operational and financial control remained with persons associated with Kessireddy Raja Shekhar Reddy, Dontireddy 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.

ED has said that Kessireddy Raja Shekhar Reddy, Tukekula Eswar Kiran Kumar Reddy and Anjani Kumar, in active connivance with Dontireddy Vasudeva Reddy, abused their influence to secure a liquor transportation tender at rates substantially higher than the prevailing rates, thereby generating proceeds of crime.

ED said its investigation revealed that SSCSPL was used as a front entity to participate in the tender process and to obtain the contract through a manipulated tender process. However, the actual execution and operational control of the transportation work was carried out by Tukekula Eswar Kiran Kumar Reddy alias Kiran Kumar and his associates, who functioned under the direct supervision and control of Kessireddy Raja Shekhar Reddy alias Raj.

ED investigation revealed that Kessireddy Raja Shekhar Reddy has emerged as the principal conspirator and controlling mind behind the organised financial crime relating to the manipulation of liquor transportation tenders floated by APSBCL.

"It has emerged that, by leveraging his political influence and by utilising his position and influence as former IT Advisor to the Government of Andhra Pradesh, Kessireddy Raja Shekhar Reddy entered into a criminal conspiracy with the then Managing Director of APSBCL, Dontireddy 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," the ED had said earlier.

The material collected during the PMLA investigation revealed that Kessireddy Raja Shekhar Reddy played a vital role in designing and executing the fraudulent scheme for centralised liquor transportation tenders with the deliberate objective of creating a mechanism for systematic corruption, unlawful enrichment and siphoning of public funds.

In furtherance of the conspiracy, ED said, Kessireddy Raja Shekhar Reddy devised and implemented a scheme for artificial inflation of transportation rates from the prevailing district-level average of approximately Rs 19.68 per carton box to rates as high as Rs 35.57 per carton box, thereby ensuring generation of massive illegal profit margins for the syndicate.

Investigation further revealed that Kessireddy Raja Shekhar Reddy orchestrated a parallel mechanism for allotment of sub-contracts to local political leaders and related persons and entities.

PMLA investigation revealed that Dontireddy Vasudeva Reddy emerged as the principal official architect and facilitator of the large-scale financial fraud perpetrated in the liquor transportation tender process.

Abusing his official position and authority, ED said, Dontireddy Vasudeva Reddy unilaterally dismantled the legally sanctioned decentralised district-level transport mechanism, which functioned through duly constituted district committees, and replaced the same with an unauthorised centralised state-wide transportation policy.

In order to justify such deviation from the existing policy framework, Dontireddy Vasudeva Reddy allegedly furnished false, misleading and untenable recommendations to the government by claiming that issues relating to non-uniform transportation rates and labour handling necessitated centralisation, despite the fact that such issues were either non-existent or already adequately addressed under the prevailing district-level agreements.

"The PMLA investigation further revealed that Dontireddy Vasudeva Reddy proceeded to implement the said centralised policy without obtaining any categorical approval or authorisation from the government for deviation from the prescribed guidelines and established procedures. He also unlawfully granted repeated extensions of the transportation contracts awarded to SSCSPL for prolonged periods far beyond their original tenure without obtaining mandatory approval from the government or even intimating the competent authorities. Manipulated tender process and illegal extensions caused wrongful loss to the government exchequer," the ED has said. (ANI)