VIJAYAWADA: The ED Special Court has granted conditional bail to key accused Kesireddy Rajasekhara Reddy alias Raj Kesireddy and Donthireddy Vasudeva Reddy in the liquor scam.
The court directed both accused to furnish two sureties of `1 lakh each. It also imposed conditions, including a bar on leaving the country without prior permission. The accused were instructed not to influence witnesses or tamper with evidence, appear before ED officials whenever summoned and cooperate with probe.
The bail comes amid an ongoing multi-agency probe into alleged irregularities in the procurement, distribution and transportation of liquor in AP during YSRCP regime.
The ED has alleged that tender conditions for liquor transportation were manipulated in favour of selected entities, causing losses to the state exchequer. In a June 2026 statement, the agency said its investigation into the transport component was based on a CID case alleging a loss of Rs 195.33 crore. It alleged that certain companies acted as fronts while financial control remained with persons linked to the accused.
The ED had arrested Rajasekhara Reddy and Vasudeva Reddy on June 11, 2026, in connection with the transport scam investigation.
Separately, the agency has alleged much larger irregularities in the broader liquor procurement case. In March, it said it had attached properties worth `441.63 crore belonging to Rajasekhara Reddy, Vasudeva Reddy and others. It has alleged a wrongful loss of Rs 3,500 crore in procurement.
