ESI Scam: Andhra Pradesh ACB arrests senior TDP leader, Chandrababu cries vendetta

Former minister and TDP senior leader Kinjarapu Atchen Naidu has been arrested by Andhra Pradesh Anti Corruption Bureau (ACB) sleuths on Friday for his alleged involvement in the Employees State Insurance (ESI) scam.

In the wee hours of Friday, ACB teams from Vijayawada and Visakhapatnam bureau gheraoed the former minister Atchen Naidu's residence at Nimmada in Srikakulam district and arrested him.

A few days ago, ACB authorities arrested former Insurance Medical Services (IMS) director Dr CK Ramesh Kumar in Tirupati. Atchen Naidu was arrested based on Dr. Kumar's confession and available evidence.

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The ESI Scam

It was earlier in February that the Andhra Pradesh vigilance and enforcement department unearthed a multi-crore scam in purchases of medicines, dispensaries and diagnostic centres of ESI-affiliated hospitals.

An investigation by the Vigilance and enforcement wing revealed that an amount of Rs 975.79 crore was spent on procuring the equipment during the previous TDP regime. Atchen Naidu then served as the labour and employment minister between 2014 and 2019.

Vigilance authorities revealed that Atchen Naidu had directed Dr Kumar in writing in 2016 to issue work orders to a company named Tele Health Services Pvt Ltd bypassing norms such as inviting open tenders for a contract.

The contract required the company to provide toll-free services to patients under the ESI scheme for assistance in pending medical reimbursements and referral bills.

IMS had then signed a memorandum of understanding (MoU) with Tele Health Services Pvt Ltd and agreed to pay Rs 1.80 per month for each internet protocol (IP) address, irrespective of the number of calls attended. IMS also allegedly signed another MoU with the same company, permitting it to conduct electrocardiogram (ECG) tests for patients under the ESI scheme.

According to the contract, the company was granted Rs 480 for each ECG. The same test at a hospital costs about Rs 200.

A probe revealed that the service-provider falsely claimed bills by submitting call logs of Telangana IPs, which were not verified by the then concerned authorities. The private company violated other specified norms such as availing services of post-graduate diploma-holder clinical cardiologists, instead of specialists, who hold a degree in Doctorate of Medicine (DM).

Dr. Kumar along with another director, Dr G Vijaya Kumar, were found to have paid Rs 4.15 crore and Rs 3.81 crore to the company for its toll-free service and ECG tests, respectively.

When the vigilance inquiry report came to light, Atchen Naidu pleaded innocence and said that he only followed the Central government's order, which had urged all states to offer telehealth services for patients covered under the ESI scheme. He also pointed out the example of Telangana government which followed a similar procedure.

Read: Senior TDP Leader Atchannaidu Taken Into Custody In "ESI Scam"

Targetted for exposing Jagan scams: Chandrababu

Immediately after the arrest came to light on Friday, TDP president and former chief minister N Chandrababu Naidu blamed the Jagan Mohan Reddy government for targetting and harassing Atchan because he was relentless in fighting against the ruling party excesses and atrocities in sand, land and liquor scams.

"Jagan Reddy's frustration is evident because he's not confident of facing debates in the ensuing budget session of the state Assembly. The ruling party has no valid defence and arguments on the issue of multi-crore, multiple scams in land, sand, liquor, mines, coronavirus kits and bleaching powder scams," said Naidu.

The TDP chief added that the YCP rule has launched efforts to suppress and weaken the backward classes leadership in the state. "Atchan Naidu's family has got a good name not just in Srikakulam district but all over the state. Jagan Mohan Reddy is taking vindictive action against BC leaders who are questioning his government's illegal activities," stated Naidu.

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