Can’t consider it now: Special court dismisses TDP leader K Atchannaidu's bail petition in ESI scam

The TDP leader was arrested last month for his alleged involvement in the multi-crore Employees State Insurance (ESI) scam.
TDP leader K Atchannaidu (File photo| EPS)
TDP leader K Atchannaidu (File photo| EPS)

VIJAYAWADA: In a setback to arrested TDP leader K Atchannaidu, a special court of the Anti-Corruption Bureau (ACB) on Friday dismissed the bail petition, stating that it cannot consider his request at this juncture.

The TDP leader was arrested last month for his alleged involvement in the multi-crore Employees State Insurance (ESI) scam. Speaking to the media, special government pleader Kasa Jaganmohan Reddy asserted that Atchannaidu was arrested following the due process of law and was shifted to a hospital considering his medical condition.

"He has been shifted to jail after he was discharged from hospital. He has no problem in getting medical treatment... earlier, he had filed a plea citing coronavirus and now, he filed a plea claiming ill-health," Reddy said.

Accusing the TDP leader of resorting to corrupt practices for personal gain, he said a meeting was held on Chandranna insurance scheme in 2016 and Atchnnaidu claimed the issue of ESI toll free number was also discussed at the same meeting. "But upon examining the minutes of the meeting, it was found to be false. Signatures of officials were not found.. in fact, they were not present at that meeting," he added.

Atchnnaidu had indeed directed the directors to sign an MoU with Tele Health Services and an agreement was accordingly entered into, under which, the company would be paid irrespective of the calls made to those registered under ESI or not, the special government pleader explained.

"Bills were presented for even those who had insurance in Telangana. This way, a sum of Rs three crore was paid to Tele Health Services. They charged Rs 480 for ECG whereas the normal cost is Rs 200. A staggering Rs four crore was misappropriated," he said.

He said investigation so far has established that the then minister Atchnnaidu and the then directors had resorted to graft to the tune of Rs 150 crore. "10 accused are yet to be arrested. It is yet to be found to whom the kickbacks were paid," he said.

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