Ex-Andhra Pradesh CM Chandrababu Naidu Arrested in Rs. 371 Crore Skill Scam

Andhra Pradesh Ex-Chief Minister Naidu Detained in Massive Corruption Probe

TDP Chief N. Chandrababu Naidu Arrested in Rs. 371 Crore Skill Development Scam

Amaravati, September 09

In a significant development, the former Chief Minister of Andhra Pradesh, Chandrababu Naidu, has been apprehended by the Criminal Investigation Department (CID) police in Nandyala today. This arrest is linked to his alleged involvement in the Skill Development Corporation scam, which has sent shockwaves throughout the state. Mr. Naidu, referred to as A1 in the case, faces serious allegations of corruption and misleading the cabinet in a scandal that has rocked the region.

The Skill Development Corporation scam, involving a staggering sum of 371 crores in government funds, has captured the attention of authorities and the public alike. Accusations against Mr. Naidu and others implicated in the case include contract manipulation, misappropriation of public funds, and orchestrating a fraudulent scheme under the guise of a skill development corporation.

Government agencies, including GST, Intelligence, IT, ED, SEBI, among others, have conducted extensive investigations into this scandal. Remarkably, authorities have successfully repatriated looted funds that were concealed abroad.

This scandal came to light just two months after Mr. Chandrababu Naidu assumed power in June 2014. The project under scrutiny had a total cost of Rs. 3,356 crores, with the government contributing 10 percent, while Siemens committed to 90 percent of the funding. Siemens, a key player in this scandal, conducted an internal inquiry and issued a statement under Section 164 of the Criminal Procedure Code (CrPC) before a Magistrate. Siemens stressed that their company had no involvement in the Joint Venture (JVO) or the Memorandum of Understanding (MoU) issued by the government.

A central concern in this case is the manner in which a note from Skill Development, indicating the estimated cost as a Detailed Project Report (DPR), was presented to the cabinet, bypassing established government procedures. This irregularity, combined with the swift approval and release of funds, has raised serious questions regarding adherence to rules, regulations, and due process.

Moreover, there appears to be a disconnect between the contract and government orders, as funds were disbursed without a clear contractual basis. Allegations suggest that Mr. Chandrababu Naidu issued orders for the immediate release of funds, even when objections were raised by finance department officials. Key government officials, including the Finance Principal Secretary and the Chief Secretary, have allegedly played a role in facilitating the release of funds. However, the whereabouts of these funds remain unknown.

It has also come to light that over 70 transactions involving this money occurred through shell companies. A whistleblower had previously reported this skill development scam to the Anti-Corruption Bureau (ACB) in the state. Additionally, a government whistleblower issued a similar warning in June 2018. Unfortunately, initial investigations into these claims were set aside.

In a troubling twist, notefiles related to the project were allegedly destroyed when these investigations commenced.

Further complicating matters, companies such as PVSP/Skiller and DesignTech, which played a significant role in the Skill Scam, have claimed Cenvat without paying service tax. Suspicion arose when GST officials noticed irregularities in the company’s transactions, which were eventually revealed to involve money transfers through Hawala channels as early as 2017.