Chandrababu Naidu could face 10 years in jail if convicted in AP Skill Development Scam

MANGALAGIRI: The Andhra Pradesh Criminal Investigation Department (CID) Additional DG N Sanjay said that former Chief Minister Nara Chandrababu Naidu faced a jail of ten years, if convicted, in the Rs 550 crore Andhra Pradesh Skill Development Corporation (then APSSDC) scam .

Addressing the media on Saturday, he said that the CID, which had credible information about the role of former IT Minister Nara Lokesh in the APSSDC scam would also initiate an investigation into his role in AP Fibernet Corporation and Amaravati Inner Ring Road diversion case. The CID would also seek the help of Interpol and other agencies for the arrest of the accused who escaped the dragnet and fled to the USA and UAE.

Giving details of the case, the Additional DG said that prime accused Nara Chandrababu Naidu was taken into custody at 6 a.m. at RK Function Hall, Nandyal by the Special Investigation Team (SIT) of the CID in connection with the alleged fraud in Skill Development Corporation involving approximately Rs. 550 crore.

The case revolved around the establishment of clusters of Centers of Excellence (CoEs) in the State of Andhra Pradesh, with a total estimated project value of Rs 3,300 crore. The alleged fraud had caused a huge loss to the Government of Andhra Pradesh over Rs 300 crore.

“The establishment of the APSSDC itself was done to siphon off money in the name of the establishment of CoEs. When the MoU was signed there was no APSSDC. The MoU was between the Higher Education Ministry and Siemens. The corporation came into being at a later stage. There was no cabinet approval for the formation of APSSDC,” Sanjay said.

The investigation has revealed serious irregularities:

1. Before any expenditure by private entities, the GOAP/APSSDC provided an advance of Rs. 371 crore, representing the entire 10 percent commitment by the government.

2. Most of the money advanced by the Government was diverted to shell companies through fake invoices, with no actual delivery or sale of the items mentioned in the invoices. The money moved from Design Tech to other shell companies.

3. A portion of the funds was used to create the COE clusters, a departure from the official procedure, while the rest was routed through shell companies.

4. The investigation implicates prime accused Nara Chandrababu Naidu, along with the Telugu Desam Party, as beneficiaries of the misappropriated funds.

5. Nara Chandrababu Naidu was considered 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.

6. Nara Chandrababu Naidu had exclusive knowledge of the transactions leading to the issuance of government orders and memoranda of understanding, that made him a central figure in the investigation.

7. The ultimate use of the misappropriated funds, including cash holdings with individuals like Vikas Khanvilkar, required further examination.

8. Key documents related to the case went missing. Nara Chandrababu Naidu and other individuals were the primary suspects.

9. The investigation is focusing on locating the misappropriated funds, making custodial interrogation of Nara Chandrababu Naidu necessary.

10. The material including statements of public officials recorded U/s164 CrPC clearly points to the involvement of Chandrababu Naidu as the principal decision maker to release the money in advance.

Chandrababu Naidu is the central figure

The role of the common player in this case and associated investigation more particularly the complicity of Nara Chandrababu Naidu was required to be further elicited. Hence custodial investigation is deemed necessary, Sanjay said.

“Agencies such as ED and GST have already investigated the scam. Since it was deep rooted economic offence, a thorough and deep investigation is done by duly following all the criminal procedures,” he added.

All the laws and subject matters are deeply examined and the relevant material will be placed before the competent court. The entire offense has occurred in the knowledge of the prime mover, conspirator and final beneficiary of defalcation money, Chandrababu Naidu.

“He was the former Chief Minister of Andhra Pradesh and his influence over the witnesses and other accused has come on to record. 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,” the CID chief said supporting the decision to arrest Chandrababu Naidu.

He said that the accused was arrested under CR NO 29/2021 U/S 120-B, 166, 167, 418, 420, 465, 468, 471, 409, 201, 109, R/w 34 & 37 IPC Sec 12, 13, (2) R/w 13(1)(c) & (d) of Prevention of Corruption Act 1998 OF CID PS AP Mangalagiri and he would be produced before the ACB Court in Vijayawada on Saturday.

"The charges in this case carry penalties of more than 10 years of imprisonment, and given the deep-rooted conspiracy, custodial interrogation is deemed necessary to uncover all aspects of financial fraud," he added.