What's the multi-crore scam in which ex-Andhra CM Chandrababu Naidu has been arrested?

In the latest development, former Andhra Pradesh chief minister N Chandrababu Naidu was arrested by the Crime Investigation Department (CID) on Saturday in connection with the multi-crore AP State Skill Development Corporation (APSSDC) scam case. After Naidu was taken into custody in connection with the matter, several other TDP leaders were also put under house arrest. Here is all you need to know about the case. Also read: TDP chief Chandrababu Naidu faces attempt-to-murder charge after violence during Yatra High-voltage drama & the arrest In the wee hours of Saturday, a sizable police contingent led by Nandyal range DIG Raghurami Reddy and the Crime Investigation Department (CID) made their way to RK Function Hall, when Naidu was resting in his caravan. Numerous TDP supporters gathered and defied the police, initially blocking Naidu’s passage even with SPG soldiers protecting the former CM. After much drama after midnight, the police finally succeeded in arresting the TDP chief at around 6 am. The arrest warrant was served in accordance with Section 50 (1) and (2) of the Code of Criminal Procedure (CrPC), according to India Today. He is currently being taken to Vijayawada in a convoy with NSG protection. He will shortly appear in court. Before police took him in custody, Naidu took to X (formerly Twitter), and wrote, “For the past 45 years, I have selflessly served Telugu people. I am prepared to sacrifice my life to safeguard the interests of Telugu people. No force on earth can stop me from serving Telugu people, my #AndhraPradesh and my motherland.”

For the past 45 years, I have selflessly served Telugu people. I am prepared to sacrifice my life to safeguard the interests of Telugu people. No force on earth can stop me from serving Telugu people, my #AndhraPradesh and my motherland.

Posted at 6 AM, 09th September 2023 pic.twitter.com/721COYldUd

— N Chandrababu Naidu (@ncbn) September 9, 2023

Several cases have been registered against him under Sections 120(b), 166, 167, 418, 420, 465, 468, 201, and 109, along with 34 and 37 of the Indian Penal Code (IPC). He is also facing accusations under the Prevention of Corruption Act of 1988. Sections imposed against him are non-bailable. In a statement following Naidu’s arrest, Naidu’s counsel stated, “CID has taken Chandrababu for a medical check-up after high blood pressure and diabetes were detected. We are approaching the High Court for bail.” Notably, the arrest comes just days after the TDP chief anticipated his future during a public event in Rayadurgam, Anantapur district, today and claimed that he would even be attacked. “Today or tomorrow they could arrest me. They may even attack me. Not one, they will do many atrocities,” Naidu had said on Wednesday pointing out to the YSRCP government. The former education minister claimed that this was a case of political vendetta in response to his and Naidu’s arrest. India Today quoted him as saying, “This is an unfortunate and shocking state of affairs. Chandrababu Naidu is the senior most politician in the country and there have been no injustices under his governance. It is very shocking that such a person who has been among the people, has been arrested by the police officials. All of this is done just to see Andhra Pradesh Chief Minister YS Jagan Mohan Reddy’s eyes filled with happiness. All of this is nothing but a political vendetta.” Also read: Karnataka Results: Love over hate, women and caste factor. How Congress won the southern state The case According to Hindustan Times, the state police’s CID launched an investigation into an alleged scam involving Rs 3,356 crore in the APSSDC under the former Telugu Desam Party administration in March. The probe is the result of notices that were sent to Arja Srikanth, a former Indian Railway Traffic Service (IRTS) officer who served as the CEO of APSSDC in 2016. These notices were based on the statements of an accused who has now become an approver and the testimony of three IAS officers. The TDP government founded the APSSDC in 2016 with the goal of empowering unemployed youngsters by enhancing their employability through skill training. [caption id=“attachment_13102452” align=“alignnone” width=“640”] Police personnel detain Telugu Desam Party (TDP) supporters during their protest against the arrest of TDP chief Chandrababu Naidu, at Tadivaripalli village of Markapuram Constituency, Saturday. PTI[/caption] According to the preliminary investigation, the TDP administration signed an MoU for a project with an estimated cost of Rs 3,356 crore. It was drafted with two companies: Design Tech Systems Pvt Ltd and Siemens Industry Software India Ltd. Six centres of excellence for talent development were to be established by Siemens Industry Software India Ltd. With Siemens and Design Tech providing the remaining 90 per cent of the finances as grant-in-aid, the state government was expected to contribute roughly 10 per cent (or Rs 371 crores) of the entire anticipated cost. Also read: What is Rajasthan’s infamous ‘red diary’? Will its ‘secrets’ hurt the Ashok Gehlot government? Irregularities But afterwards, the investigation found a number of irregularities.

1. The project was started without using the customary tendering procedure.
2. It did not receive permission from the state cabinet.
3. Siemens Industry Software India Ltd is accused of not contributing any of its own funds to the project.
4. The fact that over 70 of the transactions involving this money used shell firms has also come to light. This skill development fraud had previously been revealed to the state’s Anti-Corruption Bureau (ACB) by a whistleblower, according to News18. The project’s funds were diverted through phoney businesses like Allied Computers, Skillers India Pvt Ltd, Knowledge Podium, Cadence Partners, and ETA Greens, reported Hindustan Times.

Several government organisations, including GST, Intelligence, IT, ED, and SEBI, have all conducted in-depth investigations into this fraud. The authorities have recovered stolen money that was hidden aboard and brought it home successfully, as per News18. A significant participant in this fraud, Siemens, performed an internal investigation and found that the project manager had diverted the government-allocated funds to shell businesses through hawala transactions. The project manager was consequently fired. The business even gave a statement in front of a magistrate in accordance with Section 164 of the Criminal Procedure Code (CrPC). It made clear that their business was not a part of the Joint Venture or Memorandum of Understanding (MoU) signed by the government. Also read: With Andhra Pradesh loss and no role in national politics, has Chandrababu Naidu reached end of the road? The allegations According to a report by India Today, a First Information Report (FIR) was filed in the case in 2021. As the first accused in the case, Nara Chandrababu Naidu is accused of manipulating contracts, stealing from the government, and planning fraud under the cover of a talent development business. One of the main difficulties, in this case, is how a note from Skill Development was submitted to the cabinet without following established government protocol, displaying the anticipated cost as a Detailed Project Report (DDR). The due procedure rules compliance, and these abnormalities have all been seriously questioned in light of the quick approval and disbursement of funds. With inputs from agencies