Hyderabad: Enforcement Directorate on Thursday took three key accused from Chanchalguda Central Prison into its custody for interrogation in the alleged Andhra Pradesh liquor syndicate and transportation contracts scam.Former AP State Beverages Corporation Limited (APSBCL) managing director Dontireddy Vasudeva Reddy, businessman Kessireddy Raja Shekhar Reddy and Karumuri Sunil Kumar, son of former Andhra Pradesh civil supplies minister Karumuri Nageswara Rao, were handed over to ED officials at around 10 am following separate orders issued by a Hyderabad sessions court.The three accused were questioned through the day and will remain in ED custody until July 18. The orders, passed on July 15, granted the agency three days’ custody in connection with an Enforcement Case Information Report (ECIR) linked to the alleged liquor syndicate and transportation contracts scam.According to the ED, the case revolves around an alleged conspiracy involving members of a liquor syndicate and govt officials who purportedly manipulated APSBCL transportation contracts to generate illegal gains. The agency alleged that proceeds of crime generated through tailor-made tender conditions and kickbacks were routed through front companies and bank accounts before being projected as legitimate funds.ED seeks money trailThe ED alleged that Vasudeva Reddy, named as accused No. 1, misused his position as APSBCL MD to centralise and alter tender conditions in favour of the syndicate and its associates.Kessireddy, accused No. 2, was described by the agency as a politically influential person who allegedly helped secure contracts for a ‘facade’ company, SSCPL, and channelled proceeds through entities under his control.Sunil Kumar, accused No. 3, allegedly used his influence to facilitate transportation sub-contracts, collect kickbacks and disguise the proceeds as legitimate business transactions.Seeking custody, the ED told the court that custodial interrogation was necessary to trace and recover proceeds of crime, much of which was allegedly generated in cash, identify the ultimate beneficiaries and determine the role of other members of the alleged cartel. The agency also sought to confront the accused with witness statements as well as documentary and digital evidence collected during the investigation.Defence opposes custodyThe defence opposed the ED’s plea, arguing that the accused had been in judicial custody since June 11 and that searches had already been conducted and relevant documents seized. It contended that the petitions relied on previously available material and failed to disclose any fresh investigative requirement warranting custodial interrogation.Kessireddy’s counsel pointed to an unexplained 18-day delay in seeking custody, while Sunil Kumar’s lawyer argued that his client had been falsely implicated due to earlier business disputes involving partners of a construction company.The court, however, held that the seriousness of the allegations and the need to trace the alleged money trail justified custodial interrogation. While granting custody, it directed the ED not to use threats, coercion or third-degree methods during questioning and allowed advocates for the accused to remain within visible distance, though beyond hearing range, during the interrogation.
