VIJAYAWADA: In a key development in the multi-crore Andhra Pradesh State Skill Development Corporation (APSSDC)–Siemens project scam, in which the Chief Minister Nara Chandrababu Naidu was arrested, the Directorate of Enforcement (ED), Hyderabad Zonal Office, has filed a supplementary prosecution complaint before the Special PMLA Court in Vizag.
The court took cognisance of the supplementary prosecution complaint on January 28, 2026, according to a release issued on Saturday. The ED filed the supplementary complaint against M/s Designtech Systems Private Limited, its Managing Director (MD) Vikas Vinayak Khanvelkar, Suman Bose, former MD of Siemens Industry Software India Pvt. Ltd., Mukul Chandra Agarwal, Suresh Goyal and others.
It may be recalled that the ED initiated its investigation based on an FIR registered by the AP Crime Investigation Department (CID). The FIR alleged that funds invested by AP government in APSSDC–Siemens project were diverted and siphoned off by the then Chief Minister, Chandrababu Naidu, and others, including ministers and government officials.
The CID named Chandrababu Naidu as accused number 37 in the case and arrested him on September 9, 2023, for his alleged role in the misappropriation of APSSDC funds, which reportedly caused a loss of Rs 371 crore to the State exchequer.
The project aimed to boost skill development among unemployed youth and encourage entrepreneurship in the State.
The ED said its probe revealed that Vikas Khanvelkar, Suman Bose and their associates diverted government funds through shell and defunct entities using multi-layered transactions. The accused allegedly siphoned funds by raising bogus invoices for materials and services. The ED arrested Khanvelkar, Bose, Mukul Chandra Agarwal and Suresh Goyal on March 4, 2023. In April 2023, agency attached fixed deposits worth Rs 31.20 crore belonging to Designtech Systems Pvt Ltd. The Special PMLA Court took cognisance of the prosecution complaint in May 2023.
Further investigation led to the identification of additional proceeds of crime in the hands of other accused. As a result, the ED attached bank balances, shares and immovable properties located in Delhi NCR, Mumbai and Pune worth Rs 23.54 crore. With this, the total value of assets attached in the case reached Rs 54.74 crore.
The ED filed supplementary prosecution complaint, which Vizag Special PMLA Court has taken into record. The AP CID gave a clean chit to Chandrababu Naidu in the case. The ACB court accepted the agency’s closure report and closed it, terming it a ‘mistake of fact.’
ED attaches assets worth Rs 54.74 crore so far
Further investigation into the misappropriation of APSSDC funds, which caused a loss of Rs 371 crore to the State exchequer led to the identification of additional proceeds of crime in the hands of others. The ED attached bank balances, shares and immovable properties located in Delhi NCR, Mumbai and Pune worth Rs 23.54 crore. With this, the total value of assets reached Rs 54.74 crore