Hyderabad : Andhra Pradesh former minister Ambati Rambabu on Wednesday reportedly admitted recommending liquor transportation subcontracts for two YSRCP associates and seeking waiver of a ₹10 lakh non-refundable deposit but maintained that he had done nothing illegal.
After the two informed him about the requirement of a ₹10 lakh non-refundable deposit, he requested that it be waived, according to Rambabu. Rambabu said the associates operated the business for five years, generating a turnover of ₹16 crore to ₹18 crore, but emphasised that turnover should not be mistaken for profit. Refuting suspicions over transfers to multiple accounts, he said transportation receipts were used for truck payments and other operational expenses, estimating profit margins at 10% to 20%. The former minister appeared before the ED at 11.30 am after skipping earlier summons, citing health issues and prior commitments. He said the Nov 2 notice had reached him too late for compliance. Having undergone a stent procedure, he added, doctors had advised eight weeks of rest until Oct 28, and medical records were furnished to the ED.
Rambabu said he explained whatever he knew about the contracts and related financial transactions. Speaking to reporters later, Rambabu said both men were YSRCP leaders from Sattenapalli, his former constituency, and had been engaged in the liquor business even before he became an MLA. He said he had approached former Andhra Pradesh State Beverages Corporation managing director Donthireddy Vasudeva Reddy seeking transportation work for them. He said he was unaware of what transpired thereafter and learnt only later that they had secured the contracts. Recommending party workers and associates for opportunities was a common political practice, he said. He said ED officials also sought identification documents, including passport details, and questioned him about bank transactions.
The ED recorded his statement and sought details of subcontracts allotted to Marri Subba Reddy and Rayapati Purushotham.
Alleging political vendetta by chief minister N Chandrababu Naidu and minister Nara Lokesh, Rambabu questioned their past opposition to CBI entry into Andhra Pradesh and accused them of influencing investigating agencies.