CID finds 'very clear' money trail in alleged scam involving Chandrababu Naidu

The Crime Investigation Department (CID), on Thursday, said that there is a 'very clear' money trail in the alleged AP Skill Development Corporate (APSDC) Scam that led to the arrest of Telugu Desam Party (TDP) chief Chandrababu Naidu. Speaking to the news agency ANI, Addition DG of CID Sanjay said that there is a clear indication that the Government funds for the Skill Development clusters were transferred but the projects never happened. 

"In this case, a Government corporation was formed and it was exclusively formed for this purpose of skill development and the proposal was moved by some private individuals...the money trail is very clearly seen," the additional DG told ANI.

"You see the role of the ED also in this when they moved in and arrested a few people. So this is a very clear case of Government money being transferred and the project itself never happened... How the money went into shell companies and all, is again part of the investigation. So further investigation will reveal the exact end-to-end tie-ups," he further said. 

Naidu was arrested on September 9 for being the "chief architect and conspirator of the offence,” according to the CID, and was sent to 14-day judicial custody after his arrest. He is currently lodged at the Rajamahendravaram Central Prison. He faced a setback on September 12 after his plea to quash the case filed against him was deferred by the Andhra High Court until September 19.

Why was Chandrababu Naidu arrested?

The CID has alleged that Chandrababu Naidu was the key conspirator in the alleged Skill Development Corporation scam when he was the Chief Minister of Andhra Pradesh from 2014 to 2019. Under the APSDC project, around Rs 3,300 was supposed to be spent by two companies - Design Tech and Siemens - and the Andhra Government to set up skill development clusters for the youth.

The two technology partners were supposed to bear about 90% of the cost, whereas the TDP Government would have paid the rest - around Rs 371 crores. The CID says that this amount was paid in advance by the Government without any expenditure and the money was funneled into shell companies. As a result of the alleged irregularities in payments, Naidu has been booked under IPC Sections 120(8), 166, 167, 418, 420, 465, 468, 471, 409, 201, 109 r/w 34 & 37 and other sections of the Prevention of Corruption Act, 1988.