VIJAYAWADA: In a major development in the alleged Andhra Pradesh State Skill Development Corporation (APSSDC) scam involving Rs 241 crore, the Enforcement Directorate reportedly summoned as many as 26 persons on Sunday in connection with a case filed by the AP Crime Investigation Department.
According to sources, the ED served notices directing all the members mentioned in the FIR dated December 9, 2021, filed by the CID, to appear before it for questioning in Hyderabad on Monday.
The ED reportedly stated that the firms involved in supplying equipment and technology allegedly evaded taxes to the government, and hence a case was filed against them after being alerted by the CID.
The crime dates back to 2014 (the previous TDP regime) when the APSSDC had entered into a memorandum of agreement (MoA) with Siemens, which envisaged at imparting high-end technology training. The scam initially came into light in 2017 when the Directorate General of GST Intelligence, Pune, registered a case against DesignTech company which later found the accused had raised fake bills through various shell companies.
The GST officials noticed that the amount was further diverted to other associated shell companies by raising fake invoices. The same was identified when Siemens conducted an internal investigation into the irregularities and concluded that funds from the APSSDC were diverted by DesignTech by giving a subcontract to PVSP IT Skills and then to other companies without providing any service or supplying goods.
Based on the complaint filed by the present APSSDC Chairman K Ajay Reddy, the CID 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 accusing the role of as many 26 persons, including some government officials in the scam.
After preliminary investigation, the CID named former MD and CEO of APSSDC, former special secretary to government and ex-officio secretary to CM Ghanta Subbarao, former managing director of APSSDC, former director of APSSDC K Lakshminarayana, OSD to 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, Pratap Kumar Kar, chief financial officer, APSSDC, DesignTech MD Vikas Vinayak Khanvalkar, Sanjay Daga, president of DesignTech Systems Limited, Mukul Agarwal, chief operating officer, Skiller Enterprises and 16 others, including some government employees in the FIR.
As part of the investigation, the CID carried out searches at various places in Hyderabad, Mumbai and Pune, and arrested six persons. It also issued notices to retired IAS officer PV Ramesh in connection with the case earlier.
In his complaint, Ajay Reddy alleged that public funds worth Rs 241 crore were swindled by the shell companies by raising fake invoices and cheated the government. “The former managing director of APSSDC Ghanta Subba Rao, former director K Lakshminarayana and other officials colluded with the private companies flouting the rules under the GO Ms No 47 and caused a loss of Rs 241 crore to the government exchequer,” Ajay Reddy said.
Further, he alleged that prime accused Ghanta Subba Rao and other accused named in the FIR conspired and floated shell companies to misuse the funds allotted by the State government for benefitting the jobless youth in the State.
According to the government order, the estimated cost of the project would be Rs 3,356 crore (approximately) and of which the technology partners would have to meet 90% of the cost as ‘Grant-in-Kind’ and the State government should bear the remaining 10%.
Contrary to the GO, a tripartite agreement was prepared in a such a way that in contravention of the letter and spirit, Rs 371 crore was released in five spells by bringing the new concept ‘Grant-in-Kind’, violating the general finance rules and the Central Vigilance Commission guidelines even before the skill development institutions were set up.
Responding to the reports of ED notices, Ajay Reddy said those involved in the scam would have to face the probe now. Meanwhile, Housing Minister Jogi Ramesh suspected the involvement of former chief minister Nara Chandrababu Naidu and his son Lokesh in the scam.
Summoned for questioning in Hyderabad
The ED served notices directing all the members mentioned in the FIR dated December 9, 2021, filed by the AP CID, to appear before it for questioning in Hyderabad on Monday in connection with the AP State Skill Development Corporation scam involving Rs 241 crore, sources said