The Enforcement Directorate's probe into the alleged Andhra Pradesh liquor scam has uncovered an alleged transportation racket linked to the movement of liquor from depots to government retail outlets.
Centralized Tender and Inflated Rates
According to the investigation, a centralized liquor transportation tender floated by the Andhra Pradesh State Beverages Corporation Limited in October 2020 was awarded at rates 15 to 20 percent higher than prevailing rates to a Delhi-based company, Sigma Supply Chain Solutions Pvt Ltd, which allegedly acted as a front entity for a syndicate. The ED is likely to arrest a few accused in the case soon.
Financial Irregularities
The agency found that the actual transportation operations were handled by entities and associates linked to the syndicate, while the contract generated about ₹349.78 crore in receipts from APSBCL between October 2021 and March 2024. Portions of these funds were diverted through shell companies, routed into real estate purchases, and layered through multiple entities to conceal the proceeds of crime, the ED alleged.
Details of the Tender Process
The case centers on a centralized open tender floated by APSBCL on October 10, 2020, for liquor transportation across the state. Before this, transportation was handled depot-wise. The new centralized tender was awarded at about ₹33 per case per kilometer, with the value for the first year estimated at about ₹73 crore. The ED alleged that the tender was awarded to Sigma Supply Chain Solutions as part of a fronting arrangement. Under what the agency described as a secret revenue-sharing agreement, 95 to 96 percent of the revenue was allegedly retained by syndicate associates, while SSCSPL kept only 4 percent for its role as the prime tender holder for technical facilitation.
Key Entities and Individuals Involved
SSCSPL sub-leased the actual work to MTEKKR Exports Pvt Ltd, also referred to as TEKKR, a company owned by syndicate member T Eswar Kiran Kumar Reddy, also known as Kiran Kumar. TEKKR allegedly managed manpower and local logistics. Kiran Kumar, according to ED, is a close associate of liquor scam mastermind Raj Reddy. The agency also named Anjani Kumar, director of Arroyo Services Pvt Ltd, as a mediator and project director who handled day-to-day operations and coordination with APSBCL. Saif Ahmed, an employee of TEKKR, allegedly handled finance-related work, logistics coordination, physical collection, and delivery of kickbacks to syndicate leaders.
Role of Former APSBCL Managing Director
The agency alleged that D Vasudeva Reddy, former managing director of APSBCL, in connivance with the syndicate, abused his official position to float the tender and ensure that it was awarded to the fronted entity at inflated rates. Atul Kumar, director of SSCSPL, allegedly provided the corporate front for the syndicate to participate in and obtain the contract.
