A Supreme Court bench led by Chief Justice Surya Kant dismissed the anticipatory bail plea of former Andhra Pradesh minister Karumuri Venkata Nageswara Rao.
The apex court upheld the Telangana High Court's decision to refuse relief to Rao in the state liquor transportation scam.
Rao is accused of acting as a political facilitator to rig the Andhra Pradesh State Beverages Corporation Ltd tender process between 2020 and 2024.
The Supreme Court on July 29, 2026 denied anticipatory bail to former Andhra Pradesh minister Karumuri Venkata Nageswara Rao over his alleged involvement in a state liquor transportation scam. A bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V Mohana dismissed the plea. The top court upheld an earlier decision by the Telangana High Court that refused to grant him relief.
Rao approached the court seeking protection from arrest. His counsel argued that the former minister had no connection to the alleged scam and cited health issues to request bail. The court declined to grant him protection.
Rigging The Tender Process
Authorities accused Rao of acting as a political facilitator to rig the Andhra Pradesh State Beverages Corporation Ltd (APSBCL) liquor transportation tender process between 2020 and 2024. The scheme allegedly bypassed government approval to replace a decentralised transportation system with a centralised framework. This new system was designed to favour specific front entities.
Investigators identified Delhi-based Sigma Supply Chain Solutions Pvt. Ltd. and Prasad Transport as the front entities used by the syndicate to secure contracts. The Enforcement Directorate (ED) clarified that no individual associated with Sigma faces accusations of direct involvement in the scam.
Kickbacks And Financial Losses
The investigation began following a first information report registered by the Andhra Pradesh Criminal Investigation Department. This triggered parallel probes by the ED and a Special Investigation Team. Authorities subsequently arrested Rao's son, Sunil Kumar, The News Minute reported.
Rao and Kumar allegedly forced sub-contractors into an oral 85:15 profit-sharing arrangement. They pocketed ₹15 crore in kickbacks, which they laundered through shell companies.
The overall liquor transportation project generated ₹349 crore in revenue. Investigators estimate the tender manipulation caused a loss ranging from ₹192 crore to ₹195.33 crore to the state exchequer.
