Chandrababu Naidu, the former Andhra Pradesh chief minister, found himself in hot water recently, as he was arrested by the Criminal Investigation Department (CID) on Saturday. This arrest is linked to his alleged involvement in a significant financial scandal worth Rs 371 crore related to the Andhra Pradesh skill development initiative.
The scandal revolves around the creation of the Andhra Pradesh State Skill Development Corporation (APSSDC) back in 2014, with the goal of providing training to unemployed youth and establishing partnerships with educational institutions near industrial zones like Kia in the Anantapur district.
Naidu's arrest took place early in the morning at the RK Function Hall in Nandyala town, Andhra Pradesh. The Deputy Superintendent of Police of the CID's Economic Offences Wing (EOW), M Dhanunjayudu, stated that the charges against him were non-bailable.
The charges against Naidu include various sections of the Indian Penal Code, such as Sections 120B (criminal conspiracy), 420 (cheating and dishonestly inducing delivery of property), and 465 (forgery), as specified in the notice issued under CrPC Section 50 (1) (2). Furthermore, the Andhra Pradesh CID has also applied the Prevention of Corruption Act in this case.
The key allegations against Chandrababu Naidu are:
- Naidu is accused of masterminding a massive Rs 371 crore scam through the Andhra Pradesh State Skill Development Corporation (APSSDC) under the pretext of training unemployed youth in the state. He is alleged to have meticulously planned, directed, and executed the scam.
- During his tenure as chief minister, an MoU was signed between the state government and Siemens, a German engineering giant. It is alleged that a substantial sum of Rs 371 crore was disbursed within three months, despite Siemens not contributing any funds to the project. The MoU stipulated that the Andhra Pradesh government should contribute 10% of the total project cost.
- Concerns about transparency were raised as no note files were signed by key officials, and there were reports of attempts to destroy crucial documentary evidence related to the scandal.
- The project was supposed to be carried out by APSSDC in partnership with a consortium, including Siemens. Siemens was responsible for establishing six centers of excellence.
- According to the Enforcement Directorate's investigation, the Andhra Pradesh government bypassed standard procedures by releasing Rs 371 crore without a proper tendering process. Additionally, Rs 241 crore was allegedly diverted to various shell companies, with no discernible benefit for skill development.
- Allegations suggest that Naidu ordered the immediate release of funds, despite objections from finance department officials. Several high-ranking government officials, including the Finance Principal Secretary and Chief Secretary, were implicated in facilitating fund release.
- More than 70 transactions involving these funds reportedly passed through shell companies, further complicating the case.
- Whistleblowers had previously reported the skill development scam to the Anti-Corruption Bureau (ACB), and similar warnings were issued in 2018. Initial investigations into these claims were inconclusive, and documents linked to the project were allegedly destroyed.
- Central concerns revolve around the disregard for established government procedures, rapid fund approvals, and the absence of a clear contractual basis for fund disbursement.
In addition to the skill development scandal, companies like PVSP/Skiller and DesignTech have faced accusations of claiming Cenvat without paying service tax. Suspicions arose when GST officials identified irregularities related to money transfers through Hawala channels dating back to 2017. Let's wait and watch how this case unfolds.
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