Hyderabad: In a major development in the alleged Andhra Pradesh liquor scam, the Hyderabad wing of the
Enforcement Directorate attached movable and immovable properties worth Rs 441 crore belonging to the accused, their family members, and associated entities.
The attached assets belong to the accused, Kesireddy Rajasekhar Reddy, his family members, and related entities; Booneti Chanakya and his related entities; relatives and entities linked to Donthireddy Vasudeva Reddy, and others.
The properties — attached under provisions of the Prevention of Money Laundering Act — include bank accounts, fixed deposits, land parcels, and other immovable assets.
Investigators have so far traced a money trail of Rs 1,048 crore in the form of kickbacks that distilleries were allegedly compelled to pay. These payments were made in cash, gold, and through control and operation of certain distilleries by the syndicate, apart from financial gains derived from liquor transportation.
The ED initiated its probe based on an FIR registered by the Andhra Pradesh CID under charges of criminal conspiracy, criminal breach of trust, and cheating. The case stemmed from a complaint by the state principal secretary alleging loss to the state exchequer.
The ED has alleged that Rajasekhar Reddy, in coordination with a liquor syndicate, orchestrated a multi-crore scam targeting the state's liquor procurement and distribution framework. According to investigators, the manipulation of the Andhra Pradesh State Beverages Corporation Limited (APSBCL) procurement process resulted in an estimated loss of nearly Rs 3,500 crore to the state exchequer."
The proceeds of crime generated from the scam were laundered and distributed among syndicate members for personal enrichment, the ED said. Rajasekhar Reddy, in collusion with Chanakya, Muppidi Avinash Reddy, Tukekula Eswar Kiran Kumar Reddy, Paila Dileep, Saif Ahmad, and others, collected kickbacks to the tune of Rs 3,500 crore, the ED said.
The probe found the proceeds of crime were used to purchase immovable properties and for personal enrichment of syndicate members and associates. A substantial portion of the funds was also concealed by the accused.
The investigation revealed the accused established or acquired control over several distilleries that were used as special purpose vehicles to generate proceeds of the crime. Entities like Adan Distillery Private Ltd, Leela Distilleries Private Ltd, and UV Distilleries were operated under the effective control of the syndicate and granted disproportionately high business volumes by abusing political and administrative influence, the ED said.
The central agency found several distilleries engaged vendors and fictitious entities for the supply of raw material and packaging items. These vendors converted banking funds into unaccounted cash through inflated and fictitious invoicing for goods that were never actually supplied.
Further investigation revealed the proceeds of crime were routed into the real estate sector and used to acquire personal assets. Tainted funds were channelled through entities like Eshanvi Infra Projects Private Ltd, ED Entertainment, Uni Corporate Solutions Private Ltd, and Tag Developers to purchase land parcels and undertake residential development projects.
Investigators also found the use of fabricated and back-dated agreements to show illicit funds as legitimate business receipts.
Sudhakar Reddy Udumula is the Editor (Investigation) at the Times...
Read MoreSudhakar Reddy Udumula is the Editor (Investigation) at the Times of India, Hyderabad. Following the trail of migration and drought across the rustic landscape of Andhra Pradesh and Telangana, Sudhakar reported extensively on government apathy, divisive politics, systemic gender discrimination, agrarian crisis and the will to survive great odds. His curiosity for peeking behind the curtain triumphed over the criminal agenda of many scamsters in the highest political and corporate circles, making way for breaking stories such as Panama Papers Scam, Telgi Stamp Paper Scam, and many others. His versatility in reporting extended to red corridors of left-wing extremism where the lives of security forces and the locals in Maoist-affected areas were key points of investigation. His knack for detail provided crucial evidence of involvement from overseas in terrorist bombings in Hyderabad.
Read Less