In the early hours of Saturday, N Chandrababu Naidu, the president of the Telugu Desam Party (TDP) and former chief minister of Andhra Pradesh, was apprehended in connection with a significant financial fraud involving the AP State Skill Development Corporation (APSSDC). In addition to the apprehension of Chandrababu Naidu, a number of TDP leaders have been sent to house arrest.
A substantial group of law enforcement officers, headed by DIG Raghurami Reddy from the Nandyal range, together with members of the Crime Investigation Department (CID), came at RK Function Hall where Mr. Naidu was taking a break in his mobile residence. A significant gathering of supporters aligned with the Telugu Desam Party (TDP) exhibited resistance against law enforcement authorities, including the Special Protection Group (SPG) personnel who were initially tasked with safeguarding the former Chief Minister, so impeding access to Naidu.
Subsequently, at approximately 6 am, law enforcement successfully apprehended the leader of the Telugu Desam Party (TDP), who is presently being conveyed to Vijayawada. Naidu was apprehended on accusations that are non-bailable, as per Sections 120(8), 166, 167, 418, 420, 465, 468, 471, 409, 201, 109 r/w 34 & 37 IPC, alongside other provisions outlined in the Prevention of Corruption Act, 1988.
The apprehension occurred a few days subsequent to the TDP leader’s anticipation of his destiny during a public engagement in Rayadurgam, situated in the Anantapur district. He moreover asserted the possibility of encountering physical harm.
There is a possibility of being apprehended either today or tomorrow. There is a possibility that I may be subjected to an attack. On Wednesday, Naidu expressed his concern on the YSRCP government, stating that they are likely to commit numerous acts of atrocity.
Could you please provide information on the alleged scam involving the AP State Skill Development Corporation?
In March, an investigation was launched by the Crime Investigation Department of the Andhra Pradesh police into an alleged scam valued at ₹3,300 crore in the Andhra Pradesh State Skill Development Corporation (APSSDC) during the previous administration led by the Telugu Desam Party. The inquiry pertains to the aforementioned individual, Arja Srikanth, who previously held the position of CEO at APSSDC in 2016.
The investigation was initiated subsequent to the issuance of notices, which were based on testimonies provided by an accused individual who has since become an approver, as well as the depositions provided by three IAS officials.
The Andhra Pradesh State Skill Development Corporation (APSSDC) was created in 2016 under the administration of the Telugu Desam Party (TDP) government. Its primary objective was to empower unemployed young individuals by offering skill training programmes that would boost their prospects for employment.
According to the preliminary inquiry conducted by the Criminal inquiry Department (CID), it was found that the government of the Telugu Desam Party (TDP) signed into a Memorandum of Understanding (MoU) for a project with an estimated worth of ₹3,300 crore.
The Memorandum of Understanding (MoU) entailed the formation of a consortium of Siemens Industry Software India Ltd and Design Tech Systems Pvt Ltd.
Siemens Industry Software India was assigned the responsibility of building six centres of excellence dedicated to skill development.
The anticipated arrangement entailed the state government’s provision of around 10% of the overall project expenditure, with Siemens and Design Tech assuming responsibility for the remaining financial resources in the form of grant-in-aid.
The study revealed a number of anomalies.
Absence of tendering procedure: The project was commenced without adhering to the established protocol for soliciting bids.
The project was undertaken without obtaining the necessary consent from the state government.
Siemens Industry Software India is purportedly involved in the misallocation of funds, since it allegedly neglected to utilise its own resources for the project and instead redirected a significant chunk of the ₹371 crore, allotted by the state, to many shell firms.
The monies allocated for the project were redirected onto various shell businesses, namely Allied Computers, Skillers India Pvt Ltd, Knowledge Podium, Cadence Partners, and ETA Greens.
The Siemens Global Corporate Office conducted an internal investigation over the project, revealing that the project manager had inappropriately diverted government-allocated funds to shell businesses through hawala transactions. As a result, the project manager was terminated from their position.
