VIJAYAWADA: TDP supremo and former chief minister N Chandrababu Naidu was arrested by the State Crime Investigation Department (APCID) for his alleged involvement in the Rs 371-crore Skill Development Corporation scam in Nandyal early Saturday.
Accompanied by a large contingent of police, sleuths of the probe agency arrived at the RK Function Hall in Gnanapuram, where the TDP chief was camping, around 3 a.m. Naidu’s SPG personnel did not allow them, citing rules that they cannot meet him till 5:30 a.m. Following an argument, the police served a notice on Naidu informing him of his arrest at 6 a.m.
Naidu was arrested under IPC Sections 120 (B), 166, 167, 418, 420, 465, 468, 471, 409, 209, 109 read with 34 and 37 and Sections 2, 13 (2) r/w 13 (1) (c) and (d) of the Prevention of Corruption Act, 1988. He was asked to move the court for bail as he was arrested under non-bailable sections.
When reports last came in, the CID was questioning Naidu at its office in Vijayawada. He was yet to be produced before the Anti-Corruption Bureau (ACB) court. Sources said the CID sleuths showed Naidu note files made by IAS officers and WhatsApp chat between his personal assistant P Srinivas and representatives of shell companies.
The key evidence against Naidu appears to be a note filed by a senior IAS officer. It is reliably learnt that the officer while endorsing the release of Rs 371 crore to Design Tech, had recommended that a GO be issued to form a committee to monitor the programme with detailed terms of reference.
And that a copy of the Memorandum of Understanding (MoU) between AP State Skill Development Corporation (APSSDC) and Design Tech be made available to his office for the record. However, his recommendation seems to have fallen on deaf ears.
Naidu questioned how could he be arrested when his name did not figure in the FIR. Nevertheless, police clarified the arrest was the first step, and all details would be provided in the remand report within 24 hours. He was shifted to the CID office in Vijayawada by road after undergoing medical tests. The TDP chief appealed to the people and the party cadre to exercise restraint.
“I have done nothing wrong. They have arrested me without evidence. I asked them to show me if there was any prima facie evidence. However, they ignored it. My name is not even in the FIR. This is totally wrong,” he said.
As the news spread like wildfire, the police placed prominent TDP leaders under house arrest to prevent any law and order problems. Shortly after Naidu’s arrest, APCID chief N Sanjay, speaking at a press conference, described Naidu as the ‘principal conspirator’ in the scam, which dates back to 2014-15 when the TDP president assumed charge as chief minister of residual Andhra Pradesh.
Explaining the case, Sanjay said the investigation revealed that Naidu orchestrated the transfer of public funds from the government meant for setting up skill development centres, to private entities via shell companies. Disclosing that key documents related to the case have gone missing, he said the focus was now on locating the misappropriated funds.
The case is not a new one. Following a whistleblower’s information, GST (intelligence), the Enforcement Directorate and the global head office of Seimens, besides the Income Tax Department investigated the fraud. As per the Government Orders issued at the time, the Andhra Pradesh State Skill Development Corporation (APSSDC), floated by Naidu, was to set up clusters of centres of excellence to impart skills to the youth. The project cost was estimated to be around Rs 3,300 crore out of which 90 per cent was to be contributed by technology partners, Siemens and DesignTech, and the rest by the State government.
However, the CID said, contrary to the GO, the State government entered into an MoU and released its share of 10 per cent amounting to Rs 371 crore before any expenditure was incurred by the technology partners. Most of this money was allegedly diverted to shell companies through fake invoices with no actual delivery or sale of items mentioned in the invoices. The CID suspects that Naidu and the TDP were the beneficiaries of the misappropriated funds.
The CID said custodial interrogation of Naidu was necessary to trace the funds. Here, it also revealed that public officials – possibly the then principal finance secretary and chief secretary – have given statements under Section 164 of the CrPC pointing at Naidu’s involvement. The charges in the case carry penalties of more than 10 years of imprisonment.
Sanjay added Naidu’s arrest was also necessary as he could influence witnesses. “The entire conspiracy points at the role of Naidu who introduced the corporation and entered into MoUs with Siemens. Later, Naidu hatched plans to siphon off the money using shell companies. His role was established and he will be presented before the ACB special court in Vijayawada,” he told TNIE.
He also explained that special teams will go to the US and the UAE to arrest the absconding accused. Naidu’s personal assistant P Srinivasa Rao and other accused had left the country soon after receiving notices. “We took all precautions to prevent the accused from absconding and arrested Naidu following due process” he added. A tense situation prevailed along Naidu’s route to Vijayawada. At several places, TDP activists staged protests and burnt effigies of government.
ACB judge rejects ex-CM’s house motion plea
In a late-night development, a judge of the Anti-Corruption Bureau (ACB) court rejected a house motion petition filed by Naidu’s advocates and directed them to file the plea after the remand report is filed in the court. In the plea, Naidu’s counsel alleged that police had detained the former chief minister at 11 p.m. on Friday, but showed the time of arrest as 6 a.m. on Saturday. He said although Naidu was brought to the CID office at Tadepalle by 4 p.m., he was yet to be produced in the court even after midnight