Vijayawada: Enforcement Directorate (ED) has reportedly found evidence during its ongoing investigation in the Rs 195.33 crore AP liquor transport scam that Kasireddy Rajasekhar Reddy is the principal conspirator in manipulation of tenders floated by the AP State Beverages Corporation to transport liquor.
"Kasireddy leveraged his political influence as well as his position as former IT adviser to the AP government," a source said.
ED revealed that the principal conspirator entered into a criminal conspiracy with the then managing director of APSBCL D. Vasudeva Reddy and the latter's close associate Tukekula Eswar Kiran Kumar Reddy for the purpose of subverting the established transportation policy framework of APSBCL and deriving unlawful pecuniary gains.
The ED's investigation disclosed that Kasireddy played a vital role in designing and executing the fraudulent scheme for centralised liquor transportation tenders with the deliberative objective of creating a mechanism for systematic corruption, unlawful enrichment, and siphoning of public funds.
The investigation noted that the principal conspirator devised and implemented a scheme for artificial inflation of transportation rates from the prevailing district-level average of approximately Rs 19.68 per carton box to rates as high as Rs 35.57 per carton box, thereby ensuring generation of massive illegal profit margins for the syndicate. He further orchestrated a parallel mechanism for allotment of sub-contracts to local political leaders and related persons and entities.
The ED investigation determined that former APSBCL MD is the principal official architect and facilitator of the large-scale financial fraud perpetrated in the liquor transportation tender process. In the process, the former MD abused his official position and authority, unilaterally dismantled the legally sanctioned decentralised district-level transport mechanism which functioned through duly constituted district committees, and replaced the same with an unauthorised centralised state-wide transportation policy.
Investigators allege that the former managing director allegedly furnished false, misleading, and untenable recommendations to the government by claiming that issues related to non-uniform transportation rates and labour handling necessitated centralisation. He even proceeded to implement the centralised policy without obtaining any authorisation from the government for deviation from the prescribed guidelines and established procedure. Further, Vasudeva Reddy unlawfully extended the transportation contracts awarded to SSCSPL repeatedly for prolonged periods far beyond their original tenure, without obtaining mandatory approval from the government.
The ED found that the liquor cartel devised a mechanism to generate unlawful gains through transportation of liquor from depots to retail outlets in AP. Kasireddy Rajasekhar Reddy, Tukekula Eswar Reddy, and Anjani Kumar, in active connivance with Vasudeva Reddy, abused their influence to secure liquor transport tender at rates higher than the prevailing rates, thereby generating proceeds of crime.
The SSCSPL had been used as a front entity to participate in the tender process and to obtain the contract through manipulated tender process. However, the actual execution and operational control of the transportation work had been carried out by Tukekula Eswar, Kiran Kumar Reddy alias Kiran Kumar, and his associates, who functioned under the direction supervision and control of principal conspirator Kasireddy Rajasekhar Reddy.
On June 11, the ED sleuths carried out search operations under provisions of PMLA 2002 at the premises of Kasireddy Rajasekhar Reddy, D. Vasudeva Reddy, Vijaya Narasimha Reddy, Vallu Sandeep, Karumuri Nageswara Rao, and Karumuri Sunil Kumar in Hyderabad. They seized a luxury car and costly watches valued at Rs 94.5 lakh, unaccounted cash, and incriminating documents.
ED arrested Kasireddy Rajasekhar Reddy and D. Vasudeva Reddy on the same day and produced them before the special court in Hyderabad, which put them in judicial remand till June 25.