VIJAYAWADA: Crime Investigation Department (CID) officials on Saturday arrested K Sambasiva Rao, former VC and MD of Infrastructure Corporation of AP Limited (INCAP), for his alleged involvement in the multi-crore AP FiberNet Project scam. After conducting medical examination at the Government General Hospital, he was produced in court. He was remanded in judicial custody till October 1. Based on a report submitted by Andhra Pradesh State Fibernet Limited (APSFL) Chairman P Gowtham Reddy to the State government that the previous TDP regime committed several irregularities in awarding the `321 crore project contracts causing loss to the tune of `121 crore to the exchequer, the CID was asked the probe the scam. After conducting a preliminary inquiry, it registered an FIR on September 9.
A case was registered under sections of cheating, forgery, criminal breach of trust and criminal conspiracy of the IPC and the Prevention of Corruption Act against 18 persons and some government officials. The accused mentioned in the FIR include former member of the Governing Council of e-Governance Authority Vemuri Hari Krishna Prasad, Tera Software Private Limited chairman SSR Koteswara Rao, managing director T Gopi Chand and six other directors and six directors of Himachal Futuristic Communications Limited.
The CID remand report stated that IRTS officer Rao, who was on deputation, was named as accused number two (A2) in the case for lifting ban on Tera Software and illegally awarding the `321 crore worth tender to the company without necessary approvals from the government. The CID officials reportedly collected incriminating evidence to prove Rao guilty during interrogation for the last three days. Public Prosecutor Meena informed Special Magistrate VS Anjaneya Murthy that Rao had colluded with Hari Krishna using a forged document, while awarding the tender to Tera Software and also extended the last date for submission of bids for the project with a malafide intention.
She further told the court that INCAP was authorised to lay optical fiber cables over the existing electric towers and poles under the Fiber Grid Project phase-I in 2015 and its aim was to provide optical fiber connectivity to villages and towns across the State at a lesser price compared to private operators. The CID officials pegged the total loss to the exchequer in the scam at `119 crore. Meanwhile, the CID officials accused Rao of not cooperating with them and not revealing facts.
‘Tera Software removed from blacklist hastily’
“Tera Software, a blacklisted company, was hastily whitelisted only to allow it to participate in the bid. Rao played a major role in awarding the project to the tainted company,” the Public Prosecutor contended.
Meanwhile, the CID officials accused Rao of not cooperating with them and not revealing facts, which are exclusive to his knowledge in the scam