CID to probe the role Nara Lokesh in the Fibrenet and Amaravati Inner Ring Road scams.
AP CID taking Chandrababu Naidu to Vijayawada after his arrest. (TDP/X)
Former Andhra Pradesh chief minister Nara Chandrababu Naidu, who was arrested from Nandyal at daybreak on Saturday, 9 September, and his TDP were the ultimate beneficiaries of the ₹270 crore siphoned off in what has come to be known as the ₹351 crore “skill development scam”, according to the state state Crime Investigation Department (CID).
Addressing the media at his Mangalgiri office in the Guntur district, CID Additional Director General N Sanjay said that though the entire scam had cost the state exchequer a sum of ₹371 crore (including ₹40 crore paid as GST), the actual amount that found its way into Naidu’s account was ₹270 crore.
The remaining amount was spent on infrastructure at the skill development centres
The CID ADG also made it clear that the agency would investigate the role of TDP general secretary Nara Lokesh in the Fibrenet and Amaravati Inner Ring Road scams.
“Naidu cooperated with us when we went to arrest him. We clarified his doubts before making the arrest. We showed him the relevant documents. Only then did we shift him from Nandyal. He is on his way to Vijayawada. We wanted to fly him to Vijayawada from Orvakallu in Kurnool by helicopter, but Naidu did not agree,” Sanjay said.
“Chandrababu Naidu is considered the principal conspirator behind the scam, orchestrating the transfer of public funds to private entities via shell companies, resulting in a loss to the public exchequer and private gains,” the officer said.
The ADG said that the police went to his caravan at about 2 am after receiving information that he was about to leave.
“We stayed put there and arrested him. He is Accused No 1 in the case and we need to interrogate him to know more about the scam and also the money trail,” he said.
The CID has slapped cases against Naidu under sections of the Prevention of Corruption Act and several sections of IPC in connection with the alleged fraud in AP State Skill Development Corporation (APSSDC).
The additional DG said that the charges, if proven, would include more than 10 years of imprisonment. Considering the deep-rooted conspiracy, custodial interrogation of Naidu was necessary to uncover all aspects of the financial fraud, he added.
The case revolved around the establishment of clusters of Centres of Excellence (CoEs) in Andhra Pradesh, with a total estimated project value of ₹3,300 crore. The alleged fraud caused a huge loss to the Government of Andhra Pradesh to the tune of ₹371 crore.
The investigation revealed serious irregularities which included release of advance of ₹371 crore as a 10 percent share of the government even before the private entities came up with a promised share of 90 percent.
Most of the money advanced by the government was diverted to shell companies through fake invoices, with no actual delivery or sale of the items mentioned in the invoices. A portion of the funds was used to create the CoE clusters, a departure from the official procedure, while the rest was routed through shell companies.
“The investigation found that Chandrababu Naidu, along with the TDP, are beneficiaries of the misappropriated funds. Naidu possesses exclusive knowledge of the transactions leading to the issuance of government orders and memoranda of understanding, making him a central figure in the investigation,” Sanjay said, adding that as key documents related to the case have gone missing, Naidu and other individuals were the primary suspects.
The material gathered during the investigation, including statements of public officials recorded under Section 164 CrPC, pointed at the involvement of Naidu as the principal decision-maker to release the money in advance, the officer said.
Other agencies, such as the Enforcement Directorate (ED) and GST had already investigated the case. The CID officer said all procedures were being followed in the deep-rooted economic offence case.
All laws and subject matters were deeply examined and the relevant material would be placed before the competent court. The entire offence occurred with the knowledge of Naidu, Sanjay said.
He said that Naidu’s arrest became necessary since in his capacity as former chief minister, he might influence the witnesses.
Tracing the root of the alleged scam, he said that, in 2014, the AP Higher Education Department had signed an MoU with Siemens to set skill development centres at six places to train youth in employment skills. Later, the state government set up AP Skill Development Corporation where Ghanta Subba Rao, an IAS officer, was appointed as the CEO.
He said that the main role in the perpetuation of the scam was played by a firm called DesignTech. The state government released ₹371 crore to DesignTech as part of its 10 percent investment, although Siemens was yet to commit its 90 percent share.
Though the Finance Department and chief secretary had raised objections to the deal, the government overrode them.
Finally, an attempt was made to show that the government share of 10 percent of the estimated cost of setting up of each of the six centres was used and the 90 percent share of Siemens came in the form of software, although it never did..
ADGP Sanjay said that one Manoj Vasudev Pardasni of DesignTech and Naidu’s PA Pendyala Srinivas, who had played key roles in the scam, have fled the country.
He said Manoj left for the UAE on 5 September, while Srinivas was in the US.
“We will issue red-corner notices to arrest them. We will take the help of Interpol also to get them back to Andhra Pradesh,” he added.
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