Former Andhra Pradesh minister Karumuri Nageswara Rao was arrested by the Enforcement Directorate (ED) on Sunday in connection with its money laundering probe into the alleged manipulation of the Andhra Pradesh State Beverages Corporation Limited (APSBCL) liquor transportation tender and diversion of proceeds generated through subcontracts.
According to sources, Nageswara Rao was arrested from Kondapur in Hyderabad, where he was allegedly staying while evading the agency’s proceedings. A case is registered under the Prevention of Money Laundering Act (PMLA), based on an Andhra Pradesh CID FIR filed into alleged irregularities in the contracts during the previous government.
The agency has alleged that Nageswara Rao and his son, Karumuri Sunil Kumar, received around Rs 15 crore through cash and banking transactions from people linked to the alleged liquor transportation syndicate.
The probe agency claims that Nageswara Rao allegedly used his influence to help secure liquor transportation sub-contracts. In its case, the ED alleged that Nageswara Rao demanded an 85% share of the profits, assuming responsibility for handling operations through Sri Sudarshana Constructions.
Sunil Kumar was arrested by the ED in June 2026. The detailed probe revealed that he allegedly acted as a facilitator, used political contacts to secure sub-contracts and was involved in handling funds generated through the alleged syndicate.
The ED has also linked transactions and assets relating to the family and others, including land, vehicles, watches, quarry rights, bank deposits and other properties, to the alleged proceeds of crime.
Earlier this month, the agency provisionally attached assets worth Rs 37.7 crore, including land in Kokapet and Khajaguda in Hyderabad, quarry rights, vehicles, watches and bank balances.
The attachment is provisional under the PMLA and is subject to adjudication and further legal proceedings.