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What Exactly Is the Rs. 371 Crore AP Skill Development Scam for Which Chandrababu Naidu Was Arrested?

In a sudden turn of events, the CID detained Chandrababu Naidu, the former chief minister of Andhra Pradesh and leader of the Telugu Desam Party, on Saturday morning in connection with an alleged Rs 371 crore fraud case involving the theft of money from the Skill Development Corporation. The incident happened in 2014.

TDP president N Chandrababu Naidu said on Saturday that he was willing to give his life to protect the interests of the Telugu people and that nothing could stop him, hours after his detention in relation to the alleged multi-million dollar skill development fraud. Days after a recent gathering in Rayadurgam, Anantapur district, when Naidu made a suggestion that he would soon be assaulted or detained, he was arrested.

The AP Skill Development Corporation is what?
Chandrababu Naidu made the decision to establish the Andhra Pradesh State Skill Development Corporation (APSSDC) a short time after assuming office in 2014. This organization was entrusted with providing training to the state’s jobless youth. This company was slated to establish a few small clusters around the state.

Students who register with the company may enroll in any of the courses or programs that APSSDC is now offering via a variety of training facilities; upon successful completion, they will also get a certificate. According to a Memorandum of Understanding (MoU) between Naidu’s administration and Siemens India, the project’s total cost was Rs 3,356 crore, of which the state government would contribute just 10% in the form of a grant-in-aid and the other 90% would be spent by Siemens.

What is the purported con?
Y Jagan Mohan Reddy, the chief minister of Andhra Pradesh, charged Naidu of being the scheme’s primary beneficiary and calling the skill development company a “scam” in March 2021. In December 2021, AP CID filed a FIR and began to work on their investigation. Following an examination by the Enforcement Directorate, it was discovered that the government had released Rs 371 crore (including taxes) before the project had even begun and without soliciting bids, in violation of both the AP Civil Works Code and the AP Financial Code.

What claims have been made against Naidu?
A senior officer of the state CID referred to Naidu as the “prime accused” in connection with the alleged fraud at a news conference held hours after Naidu’s detention. The construction of centers of excellence in Andhra Pradesh is essential to this case, according to N Sanjaya, Additional DGP of the Andhra CID.

“The Andhra Pradesh government provided 371 crore, of which a significant portion was diverted and just a little portion used to build the centers of excellence. The majority of this money was misappropriated by utilizing phony invoices and shell corporations. According to the inquiry, Mr. Naidu was the “principal conspirator” in the case, and it was under his “active leadership” that government monies were transferred to private firms through shell companies, the officer said.

According to the notification, the former chief minister of Andhra Pradesh has been detained in accordance with pertinent IPC provisions, including provisions 120B (criminal conspiracy), 420 (cheating and dishonestly inducing handover of property), and 465 (forgery). The Prevention of Corruption Act has also been used against him by the Andhra Pradesh CID.

 

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