The Anti-corruption Bureau (ACB) has arrested an ex-collector and 11 others in connection with the liquor scam in Andhra Pradesh. N Nageshwar Rao, former Collector and District Magistrate of Khammam and others have been accused of not initiating any action on the cancellation of licenses of 16 liquor shops in Khammam.

The ACB had on March 4, arrested four officials of the Excise Department on charges of processing files and manipulating records, thus playing an active role in handing over the control of business of these 16 liquor shops to the liquor syndicate led by Nunna Venkata Ramana, who is presently under judicial custody. Though the revenue divisional officer (RDO) of Khammam, in his report, established several manipulations and fabrications of the records and inclusion of another person's name other than the successful bidder in respect of these 16 shops and recommended criminal action. However, Nageshwar Rao, despite getting the report, kept quite without taking any action for the cancellation of all the licenses in accordance under sections of the AP Excise Act, the ACB release said. ACB has also arrested several excise and police officials since March this year for their alleged links with the liquor mafia.