Chandrababu Naidu Arrested: What is AP Skill Development Corruption Case? Explained

Telugu Desam Party chief Chandrababu Naidu arrested in alleged scam worth 3,300 crore in Andhra Pradesh. Several TDP leaders also placed under house arrest.

Livemint, Edited By Alka Jain
Updated9 Sep 2023
TDP chief Chandrababu Naidu after being arrested in a corruption case, in Nandyal, in the early hours of Saturday, Sept. 9, 2023. (PTI)
TDP chief Chandrababu Naidu after being arrested in a corruption case, in Nandyal, in the early hours of Saturday, Sept. 9, 2023. (PTI)

Telugu Desam Party chief Chandrababu Naidu was arrested at around 6 am from R K Function Hall at Gnanapuram in Nandyala town in an alleged Andhra Pradesh Skill Development Corporation scam, the state police said on Saturday morning. Following this, several TDP leaders have also been placed under house arrest. 

Naidu has been arrested under relevant IPC sections, including Sections 120B (criminal conspiracy), 420 (cheating and dishonestly inducing delivery of property), and 465 (forgery). In addition, AP CID has also invoked the Prevention of Corruption Act against him.

“This is to inform you that you have been arrested... at 6 am at R K Function Hall, Gnanapuram, H/o Moolasagaram, Nandyala town and it is a non-bailable offense," the notice read.

What is Andhra Pradesh Skill Development Corruption Case?

The APSSDC was established in 2016 during the TDP government in Andhra Pradesh. The program focused on the empowerment of unemployed youth by providing skill training.

The AP CID started an investigation into an alleged scam worth 3,300 crore in March which revealed that the project was initiated without following a proper tendering process, Hindustan Times reported. 

Apart from this, the investigation also uncovered several other irregularities in the program which include no project approval from the Andhra Pradesh cabinet, failure to invest resources of Siemens Industry Software India (a part of the consortium involved in the MoU signed by the TDP government), and funneling of funds allocated for the project into shell companies. 

The task of developing six centers of excellence for skill development was given to Siemens Industry Software India when the project was launched.

AP Skill Development Scam: Investigations reveal serious irregularities

1) Before any expenditure by private entities, the GoAP/APSSDC provided an advance of Rs. 371 Crores, representing the entire 10% commitment by the government, according to an official statement. 

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. 

4) 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, the statement read. 

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

6) Naidu is considered 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.

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

8) Key documents related to the case have gone missing, with Naidu and other individuals being primary suspects.

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