The Enforcement Directorate (ED) on Thursday arrested Kesireddy Rajasekhara Reddy, alias Raj Kesireddy, the prime accused in the multi-crore liquor case that allegedly took place during the previous YSR Congress party regime in Andhra Pradesh, after day-long raids on his residence and offices linked to him, people familiar with the matter said.
Along with Raj Kesireddy, ED also arrested former managing director of AP Beverages Corporation Limited (APBCL) D Vasudeva Reddy in the ₹349 crore liquor transport irregularities case.
“Both of them were produced before the special court for PMLA (Prevention of Money Laundering Act) cases at Nampally in Hyderabad,” a police officer privy to the development said.
Since morning, ED authorities conducted searches at multiple locations in Andhra Pradesh and Telangana as part of the investigation into the liquor transportation case linked to the alleged liquor scam during YSRCP rule.
The ED officials conducted searches at premises linked to Raj Kesireddy, who was former information technology advisor to former chief minister YS Jagan Mohan Reddy, at Nanakramguda.
Searches were also conducted at the residences and other premises of former civil supplies minister Karumuri Nageswara Rao, his son Karmuri Sunil Kumar, Vasudeva Reddy and his relative Narasimha Reddy.
Raj Kesireddy was arrested by the special investigation team (SIT) of Andhra Pradesh CID in 2025. The Andhra Pradesh high court granted him bail on April 7, 2026.
There are allegations that hundreds of crores changed hands in the liquor case. The Central agency reportedly found that funds were diverted through hawala and money laundering channels.
In April, ED conducted searches at the houses, offices and other premises of YSR Congress Party leader and former MLA Chevireddy Bhaskar Reddy, Raj Kesireddy, Bharati Cements director Balaji Govindappa, Krishna Mohan and Dhanunjaya Reddy in Hyderabad, Vijayawada and Tirupati.
ED is investigating on the basis of a report of the SIT. According to ED, its investigations revealed that physical cash kickbacks were collected and stored at multiple locations in Hyderabad, from where they were subsequently moved, distributed, or disposed of by designated cash handlers of the syndicate.
ED investigation had revealed a money trail of ₹1048.45 crore in kickbacks. Numerous distilleries were forced to provide these payments in various forms, including cash and gold, as well as through the control and operation of certain distilleries by the liquor syndicate. Additionally, financial benefits were obtained from the transportation of liquor.
