VIJAYAWADA: The Andhra Pradesh Crime Investigation Department, which is investigating the alleged multi-crore State Skill Development Corporation (APSSDC) scam, has charged A1 Ghanta Subbarao, retired IAS officer and former MD and CEO of APSSDC, with 42 various irregularities and violations pertaining to awarding tenders and releasing funds to the shell companies, causing loss to the public exchequer.
Based on the complaint filed by APSSDC chairman K Ajay Reddy, the APCID registered a case under Sections 166, 167, 418, 420, 465, 468, 409, 201, 109, r/w 120 (B) of the IPC and Sections 13(2) r/w 13(1)(c) and (d) of the Prevention of Corruption Act, 1988. As many as 26 persons and some government officials were named in the FIR registered on December 9.
CID officials named Ghanta Subbarao, former director of APSSDC K Lakshminarayana, special officer to the former secretary Nimmagadda Venkata Krishna Prasad, management of Pune-based company DesignTech Systems Pvt Ltd, Allied Computers International, former director of SIEMENS Industry Software (India) Pvt Ltd and Pratap Kumar Kar, chief financial officer, APSSDC, DesignTech MD Vikas Vinayak Khanvelkar, Sanjay Daga, president of DesignTech Systems Limited, Mukul Agarwal, chief operating officer, Skiller Enterprises and 16 others, including some government employees in the FIR. It also carried out searches at various places in Hyderabad, Mumbai and Pune. So far, CID officials arrested four — Ghanta Subba Rao (A1), Soumyadri Sekhar Bose (A6), Vikas Vinayak Khanvelkar (A8) and Mukul Agarwal (A10) — and produced them before the ACB Special Court magistrate who sent them to judicial remand till December 24.
Ajay Reddy, in his complaint, alleged that public funds worth Rs 241 crore were swindled by shell companies by raising fake invoices. The crime dates back to 2014 when the TDP was in power. APSSDC had entered into a memorandum of agreement (MoA) with SIEMENS, which offered training programmes in collaboration with various state governments for the youngsters and unemployed youth. He alleged that former managing director of APSSDC Ghanta Subba Rao, former director Dr K Lakshmi Narayana and other officials along with some private companies flouted the rules under the GO Ms No.47 and caused loss to government exchequer.
In the remand report submitted to the ACB special court magistrate, the CID alleged that prime accused Ghanta Subbarao and other accused named in the FIR conspired with officials of SIEMENS Industry Software (India) Pvt Ltd and floated shell companies to misuse the funds allotted by the government for benefitting the unemployed youth.
According to the government order, the estimated cost of the project would be `3,356 crore (approximately) of which the technology partners would have to meet 90 per cent of the cost as ‘Grant-in-Kind’ and the State government has to bear the rest 10 per cent. Contrary to the GO, a tripartite agreement was reached and the government released Rs 371 crore in five instalments by bringing the new concept “Grant-in-kind”, violating general finance rules and Central Vigilance Commission guidelines even before skill development institutions were set up.
“Both APSSDC and SIEMENS officials siphoned major part of the grant without providing the commensurate goods or services. During the raids and questioning, A1 Ghanta Subbarao did not cooperate with the investigating officers. Subbarao in connivance with Soumyadri Sekhar Bose and others brought the concept of Grant-in-Kind in the name of SIEMENS and sent proposals to the government without verifying facts and cost of the project. He allegedly oversaw the agreement and entered into an agreement contrary to the GO Ms NO: 4, issued on June 30, 2015. Subbarao committed irregularities such as failing to get bank guarantee from SIEMENS, obtaining utilisation certificates and monitoring the work progress of technology partners. He also appointed IAS officer Aparna Upadhyayula, wife of one of the team members of SIEMENS, GVS Bhaskar Prasad, against All India Service conduct rules.”
CID to conduct searches in Secretariat
The CID officials are further trying to conduct searches in the Secretariat and other places for collecting evidence and documents related to the crime. “The issue involves misappropriation of at least Rs 241 crore in the project and needs to be investigated thoroughly,” the CID officials added.