Chandrababu Naidu's arrest by the CID took place around 6 am at RK Function Hall in Gnanapuram, Nandyala town, in connection with the scam.
N Chandrababu Naidu. File Pic
Former Chief Minister of Andhra Pradesh, N Chandrababu Naidu, has been designated as the "principal conspirator" and "accused no 1" in a skill development scam amounting to Rs 371 crore, as per statements by the Andhra Pradesh Crime Investigation Department (CID). The CID stated that the government order was issued under Naidu's instructions, with the intention to cause wrongful loss to the public exchequer and profit private individuals, reported ANI.
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Naidu's arrest by the CID took place around 6 am at RK Function Hall in Gnanapuram, Nandyala town, in connection with the scam.
According to the CID's remand report, private entities funded six skill development clusters with a total of Rs 371 crores, funds entirely sourced from the Government of Andhra Pradesh and AP Skill Development Center. Naidu, designated as "A-1," is considered the principal conspirator responsible for creating an entity that facilitated the transfer of funds. This effectively made him the chief architect of the entire scheme, aimed at diverting public funds disproportionately to a private entity via shell companies.
Speaking at a press conference in Visakhapatnam, Additional DIG of Andhra Pradesh DG N Sanjay emphasized Naidu's exclusive knowledge of transactions leading to the issuance of government orders and memorandums of understanding, making him a central figure in the investigation. Sanjay also noted that Naidu's custodial interrogation was crucial as he could potentially influence the probe.
According to the ANI report, Sanjay stated, "He [Chandrababu Naidu] possesses exclusive knowledge of the crime. The entire offence has occurred in the knowledge of the prime mover, conspirator, and final beneficiary of defalcation money. His arrest is compulsory because of his position and it is clearly visible that he is trying to thwart further investigation and possible tampering of evidence."
This case revolves around the establishment of clusters of Centers of Excellence (CoEs) in Andhra Pradesh with an estimated project value of Rs 3300 crores. The alleged fraud has caused a substantial loss exceeding Rs 300 crores to the Government of Andhra Pradesh.
The investigation revealed serious irregularities, including the diversion of government advances to shell companies through fake invoices without actual delivery or sale of the items. Part of the funds was used to create CoE clusters, deviating from official procedures, while the remainder was routed through shell companies.
The CID implicated Nara Chandrababu Naidu as the principal conspirator behind the scheme, orchestrating the transfer of public funds to private entities via shell companies, resulting in a loss to the public exchequer and private gains.
The misappropriated funds' ultimate utilization, including cash holdings with individuals like Vikas Khanvilkar, requires further scrutiny. Critical documents related to the case have reportedly gone missing, with Naidu and others considered prime suspects.
This case carries penalties of more than 10 years of imprisonment, and custodial interrogation is deemed necessary to uncover all aspects of the financial fraud. The investigation is ongoing, with other agencies such as ED and GST already involved.
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