New case against Naidu: APCID alleges irregularities in Free Sand Policy, framed when he was CM

The CID registered the case on the basis of a complaint lodged by Mines and Geology Department Director VG Venkata Reddy.

Published Nov 02, 2023 | 10:01 PMUpdated Nov 02, 2023 | 10:01 PM

Chandrababu Naidu

The Crime Investigation Department (CID) of Andhra Pradesh has registered yet another case against beleaguered former chief minister and TDP chief N Chandrababu Naidu, who was released on bail on health grounds on Tuesday, 31 October.

The case pertains to illegal sand mining under the guise of the “Free Sand Policy” when Nadiu was the chief minister of the state between 2014 and 2019.

The CID registered the case on the basis of a complaint lodged by Mines and Geology Department Director VG Venkata Reddy.

He holds full additional charge (FAC) as vice-chairman and managing director of AP Mineral Development Corporation (APMDC).

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The policy

The CID issued an FIR and sent it to the ACB court in Vijayawada at 11.30 pm on Wednesday, 1 November.

It listed Chandrababu Naidu as Accused No 2 (A2) in the FIR. Former ministers Peethala Sujatha is A1 and Devineni Umamaheshwara Rao is A4. Former MLA Chintamaneni Prabhakar is A3.

The complainant, Venkata Reddy, said that in 2014, the then regime issued a Government Order (GO) vesting the sand reaches in the state to APMDC, which in turn was to allot them to the district and mandal mahila samakhyas.

The Free Sand Policy was evolved in 2016 after reviewing the existing policy, providing for price discovery through tender cum e-auction process for the “purpose of securing sand at an affordable price”.

The government then said that the Free Sand Policy was aimed to balance the advantages of auctions by ensuring transparency on one hand and by fixing a cap on the final sale price to be paid to build massive physical and social infrastructure.

Then the procedure for the auction process of the sand reaches was delineated. The consequential amendment to the rules was issued. Later on, a memo was issued indicating the change in the existing policy and permitting what has come to be known as the Free Sand Policy from 3 March, 2016.

Thereafter, another GO was issued, giving effect to the decision of the government for the provision of free sand. In the meantime, the statutory amendment to the original rules was shown to have been issued.

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The allegations

The complainant argued that, however, there was neither factual and legal justification nor a preparatory decision-making process shown in the record for framing the Free Sand Policy.

He said that various administrative procedures were violated leading to the framing of the Free Sand Policy.

The pros and cons were not examined. No checks and balances were put in place. No limits on the quantities to be excavated.

He added that a detailed investigation was necessary to unravel the truth behind the issuance of the Free Sand Policy.

He claimed that there was a clear loss of revenue to the state and there was pecuniary gain to the individuals.

He argued that the resources of the state were unlawfully entrusted to the hands of illegal miners. It was done in violation of the statutory regulations, he added.

There was a clear case of criminal breach of law, and more particularly, the Prevention of Corruption Act of 1988 and the Indian Penal Code, he said.

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