VIJAYAWADA: The Crime Investigation Department (CID) has speeded up its investigation into the alleged Rs 240 crore scam in the AP State Skill Development Corporation (APSSDC) by serving notices to former Indian Railway Traffic Service officer Dr Arja Srikanth, who headed the Corporation as its Managing Director and CEO when the alleged scam took place in 2016.
In 2016, the TDP government established the APSSDC to ensure that the youth are trained in various aspects to improve their skills to make them employable. As part of skill development, an MoU was signed for a project worth Rs 3,300 crore with a consortium involving Siemens Industry Software India Ltd and Design Tech Systems Pvt Ltd., CID sources said.
Based on the MoU, a government order was issued stating that Siemens Industry Software India would set up six centres of excellence for skill development worth Rs 3,300 crore and the state government would pay only 10% of the total project cost and the rest 90% would be borne by Siemens and Design Tech as
grant-in-aid.
Official sources said no tender was called for the project nor was there approval from the then State Cabinet.
During the probe, CID officials found out that Siemens Industry Software India and Design Tech had not spent a single rupee from their resources on the project.
The CID then served notices after one of the accused in the scam expressed willingness to turn approver. Similarly, three other IAS officers had also given their deposition that the then government had released funds without calling a tender owing to ‘political pressure’.
"We will send notices to other officials as well soon,’’ the sources added.
‘CID to send notices to other officials involved in scam’
Meanwhile, Siemens Industry Software India and Design Tech siphoned off a major portion of the funds contributed by the AP government as its share for 10% of the project cost, amounting to Rs 371 crore (including 10% GST).
The money was then diverted to shell companies, sources added.
The scam came to light with the Siemens Global corporate office conducting an internal probe into the project. They noticed that funds had been siphoned off.
Later, the GST intelligence wing and IT department also probed into the siphoning of funds.
A release said that in 2018, the Anti Corruption Bureau (ACB) had received complaints from a whistle-blower on these allegations following which key documentary evidence was removed from the state secretariat.
Official sources said that the CID probe revealed two key players -- Ganta Subbarao, former MD & CEO of the Corporation, and Dr Sakshi Narayana, a retired IAS officer who held the position of Director of the Corporation.
The CID registered a case in September 2021 based on a complaint filed by APSSDC chairman K Ajay Reddy.
(With online desk inputs)