TDP's Chandrababu Naidu arrested: All about Rs 371-crore scam and charges against ex-Andhra CM

Former Andhra Pradesh Chief Minister Chandrababu Naidu was on Saturday morning arrested by a special investigation team of CID in connection with a corruption case amounting to Rs 371 crore. He is accused of masterminding a multi-crore scam in the state Skill Development Corporation. The case is related to the formation of the Andhra Pradesh State Skill Development Corporation (APSSDC), whose aim was to train unemployed youth in the state.

India Today reported that during Naidu's tenure as the chief minister, the state government entered into a Memorandum of Understanding (MoU) with German engineering firm Siemens. It is alleged that Rs 371 crore was disbursed in five installments within three months, even though Siemens had not invested any funds into the project. However, according to the MoU, the Andhra Pradesh government was responsible for contributing only 10 per cent of the total project cost of Rs 3,356 crore.

Notably, no note files were signed by the then-principal finance secretary and the then-chief secretary, raising questions about transparency. It was also reported that attempts were made to destroy critical documentary evidence linked to the scandal.
 
The project was to be executed by the state skill development corporation in partnership with a consortium comprising Siemens, Industry Software India Ltd, and Design Tech Systems Pvt Ltd. Siemens was to set up six centers of excellence. However, the Enforcement Directorate (ED) found that the state government violated established norms by releasing Rs 371 crore without a tendering process. Additionally, Rs 241 crore was allegedly diverted to various shell companies, including Allied Computers, Skillers India Pvt Ltd, Knowledge Podium, Cadence Partners, and ETA Greens, without any tangible returns for skill development.

According to the report, the former chief minister ordered the immediate release of funds, despite objections from the finance department. Over 70 transactions involving these funds reportedly passed through shell companies.

The alleged irregularities surfaced after whistleblowers raised the case with the Anti-Corruption Bureau (ACB). However, preliminary investigations into these claims were inconclusive and notefiles linked to the project were allegedly destroyed. The state government allegedly bypassed established procedures and gave swift approvals for funds.

CID Additional DGP N Sanjay on Naidu's arrest  

Earlier this morning, CID Additional DGP N Sanjay informed that a special investigation team arrested "prime accused" Chandrababu Naidu for the alleged involvement in fraud in the Skill Development Corporation. He said the case revolved around the establishment of clusters of Centers of Excellence (CoEs) in the state of Andhra Pradesh, with a total estimated project value of Rs 3,300 crores. "The alleged fraud has caused a huge loss to the Government of Andhra Pradesh in excess of Rs 300 crores. N Chandrababu Naidu is considered the principal conspirator behind the scheme, orchestrating the transfer of public funds to private entities via shell companies."

Sharing the details about why the police had to arrest Naidu, Sanjay said the former chief minister possessed exclusive knowledge of the transactions leading to the issuance of government orders and a memorandum of understanding, making him a central figure in the investigation. "The investigation is focusing on locating the misappropriated funds, making custodial interrogation of N Chandrababu Naidu," the additional DGP said, adding that the material including statements of public officials recorded under Section 164 CrPC "clearly points to the involvement of Chandrababu Naidu as the principal decision-maker to release the money in advance".

TDP counters charges against Naidu

TDP leader Kanakamedala Ravindra Kumar countered the charges against Naidu and accused present Chief Minister Jaganmohan Reddy of targeting the opposition. The TDP leader that Naidu constituted a skill development corporation in order to create huge employment in Andhra Pradesh. "The total state government share is Rs 370 crores. Out of which the respective department secretaries' share of about Rs 270 crores had been released, in installments. So the question of scam doesn't arise," he said.

Kumar alleged that CM Jagan Mohan Reddy wanted to arrest Chandrababu Naidu since he was in judicial custody for a period of 16 months. "People are fully aware there are 11 CBI corruption cases and 9 ED cases registered against Jagan Mohan Reddy and his kin. The concerned officers imaged wealth of about Rs 43,000 crores according to CBI, but according to us, it is one lakh crore. The state of Andhra Pradesh is in an undeclared emergency," he said. 

(With inputs from Abdul Basheer)