The ED said the accused allegedly caused losses to the government exchequer and seized cash, luxury watches, and a vehicle during the raids.

The Enforcement Directorate on Thursday arrested a former Andhra Pradesh State Beverages Corporation Ltd. (APSBCL) official and a "prime accused" following raids in a fresh money laundering case linked to an alleged Rs 195-crore liquor transport scam in the state, officials said.

The central agency raided around five premises, including those of YSRCP leader and former civil supplies minister Karumuri Nageswara Rao and his son Karumuri Sunil Kumar, the ED officials said.

Former state beverages corporation MD Donthireddy Vasudeva Reddy and the prime accused, Kasireddy Raja Sekhar Reddy, were arrested during the searches, they said.

The ED action came after the agency registered a fresh case in May under the Prevention of Money Laundering Act (PMLA). It had earlier filed a money laundering case to investigate a Rs 3,200-crore liquor "scam", which allegedly took place under the previous YSRCP government.

The ED officials claimed that the accused persons caused a wrongful loss of Rs 195.33 crore to the government exchequer.

During the raids, Rs 9 lakh in cash was seized from the premises of a man allegedly involved in the case, Vallu Sandeep. Two Rolex watches and a luxury car were seized from the premises linked to former minister K Nageswara Reddy, they said.

Published on June 11, 2026