The Enforcement Directorate (ED) on Thursday arrested Kesireddy Rajasekhara Reddy, also known as Raj Kesireddy, the prime accused in the multi-crore liquor case that allegedly took place during the erstwhile YSR Congress regime in Andhra Pradesh, after day-long raids at his residence and offices linked to it, people familiar with the matter said.
Along with Raj Kesireddy, the ED also arrested former managing director of AP Beverages Corporation Limited (APBCL) D Vasudeva Reddy in $349 crore cases of liquor transportation violations.
“Both of them were produced before the Special Court for Prevention of Money Laundering Act (PMLA) cases at Nampally in Hyderabad,” a police officer privy to the developments said.
Since morning, ED authorities have 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 the YSRCP rule.
ED officials conducted searches at premises associated with Raj Kesireddy, who was a former IT advisor to former chief minister YS Jagan Mohan Reddy, in Nanakramguda.
Searches were also conducted at residences and other buildings of former Civil Supplies Minister Karumuri Nageswara Rao, his son Karumuri Sunil Kumar, Vasudeva Reddy and his relative Narasimha Reddy.
Raj Kesireddy was arrested by the Special Investigation Team (SIT) of the Andhra Pradesh CID in 2025. The Andhra Pradesh High Court granted him bail on 7 April 2026.
There are allegations that hundreds of crores were traded in the liquor case. The central agency reportedly found that the money was transferred through hawala and money laundering channels.
In April, the ED conducted searches at the homes, offices and other premises of YSR Congress leader and former MLA Shivreddy Bhaskar Reddy, Raj Kesireddy, Bharati Cement director Balaji Govindappa, Krishna Mohan and Dhanunjaya Reddy in Hyderabad, Vijayawada and Tirupati.
The ED is investigating on the basis of the Special Investigation Team’s report. According to the ED, its investigations revealed that physical cash kickbacks were collected and stored at multiple locations in Hyderabad, where they were later transported, distributed or disposed of by cash handlers appointed to the syndicate.
ED investigation revealed a financial impact of $Rs 1,048.45 crore in commissions. Many distilleries were forced to make these payments in various forms, including cash and gold, as well as through some distilleries being monitored and operated by the Alcoholic Beverages Guild. In addition, financial benefits were obtained from transporting liquor.
