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The Enforcement Directorate is examining alleged financial irregularities linked to liquor transportation contracts awarded between 2020 and 2024. (Img: X)
Hyderabad: The Enforcement Directorate (ED) on Tuesday issued a fresh summons to senior YSR Congress Party (YSRCP) leader and former Andhra Pradesh minister Ambati Rambabu in connection with an alleged Rs 250-crore liquor transportation scam dating back to the party's tenure in the state. Rambabu has been directed to appear before the agency at its Hyderabad office on November 4 for questioning as investigators intensify their probe into the alleged financial irregularities and suspected diversion of funds linked to liquor transportation contracts.
The case centres on allegations that transportation subcontracts awarded during the previous YSRCP government were used to facilitate questionable financial transactions and siphon off substantial amounts of money. The ED is examining whether Rambabu played a role in arranging subcontracts for his alleged associates, Marri Subba Reddy and Rayapati Purushotham, and whether he exercised influence over the contractual arrangements and subsequent movement of funds.
The latest summons comes after Rambabu failed to attend earlier rounds of questioning, citing non-receipt of the initial notice and health-related reasons. The agency is now seeking his explanation regarding his alleged association with the subcontractors, the flow of money and the individuals who may have ultimately benefited from the transactions.
As part of its investigation, the ED has questioned Marri Subba Reddy and Rayapati Purushotham separately at its Hyderabad office. The two individuals reportedly underwent nearly seven hours of questioning. Nagesh, who handled the accounts of companies associated with them, was also examined by investigators.
The agency is scrutinising Rs 19.58 crore reportedly credited to the accounts of Subba Reddy and Purushotham for executing liquor transportation subcontracts between 2020 and 2024. Investigators are attempting to establish how the money was subsequently transferred, who controlled the beneficiary accounts and which individuals or entities ultimately received the financial proceeds.
The questioning also focused on how the two subcontractors secured a four-year arrangement involving Sigma and Prasad Transports, the companies responsible for liquor transportation during the relevant period. The ED reportedly sought details about the process through which the subcontracts were awarded, the source of the capital used to execute them and the financial arrangements between the parties involved.
Investigators are also examining transaction records involving the bank accounts of the two subcontractors and their associates. Sources indicated that details of transfers to multiple accounts, along with supporting documents, were placed before them during questioning to establish the financial trail.
A key aspect of the investigation concerns the alleged relationship between Rambabu and the two subcontractors. The agency is seeking to determine whether the former minister facilitated the arrangement, influenced the allocation of transportation work or coordinated the alleged financial transactions behind the scenes.
Investigators have also examined the contractual structure under which the transportation subcontracts operated. According to sources, the arrangement was initially governed by a written agreement during the first year, but allegedly continued on verbal instructions in subsequent years.
The ED is seeking clarity on why the contractual arrangement changed, who authorised the continuation of the work and whether any financial consideration was exchanged outside the documented contractual framework.
The alleged payment of bribes is another area under scrutiny. Investigators have reportedly sought information about the identities of the suspected recipients, the amounts allegedly paid and the channels through which such payments may have been routed.
The agency's investigation is focused on establishing the complete money trail, identifying the beneficiaries of the transactions and determining whether the alleged irregularities involved the misuse of political influence or contractual arrangements.
The latest notice follows multiple earlier attempts by the ED to question Rambabu in the case. The agency had initially summoned him for September 11, 2026. He reportedly informed officials that he had not received the notice and would appear if a fresh written summons was issued.
The agency subsequently issued another summons directing him to appear on September 24. A further notice was issued in September, with September 28 set as the date for questioning. Rambabu, however, cited health-related reasons and informed the agency that he would appear after recovering.
Earlier, he had also conveyed his inability to attend the scheduled questioning and sought time on medical grounds. The latest summons is intended to secure his appearance before investigators as the probe progresses.
Rambabu and the YSR Congress Party have accused the ruling alliance government in Andhra Pradesh of political vendetta. They have alleged that the investigation is being used to exert pressure on individuals to implicate the former minister. These allegations form part of the political response to the ongoing probe.
The ED is continuing to examine the financial transactions, contractual records and statements of individuals associated with the liquor transportation arrangements. Rambabu's response to the latest summons and the findings emerging from the investigation are likely to be significant in determining the next course of the case.
