Ex-Andhra CM Chandrababu Naidu arrested after much drama over corruption charges

Former chief minister N Chandrababu Naidu was arrested in Nandyala after much drama in the early hours of Saturday in connection with the alleged ?3,300 crore Andhra Pradesh Skill Development Corporation (APSSDC) scam during the previous Telugu Desam Party (TDP) rule.

A police contingent arrived around 3am to take Naidu into custody while the former chief minister was sleeping but could not arrest him as TDP cadres workers gathered in large numbers and put up a stiff resistance. Naidu’s security detail also intervened saying they could not allow police to arrest him until 5.30am as per the rules. Naidu was eventually arrested around 6am.

Deputy inspector general (Nandyal Range) Raghurami Reddy, who led the police contingent, told Naidu he was being arrested in connection with the alleged scam, in which he is accused number one.

Andhra Pradesh Police’s Crime Investigation Department (CID) deputy superintendent M Dhanunjayudu handed over to Naidu a notice before the former chief minister was taken to Vijayawada, over 300 km away.

The notice said Naidu was being arrested under Indian Penal Code Sections including 120(8) (criminal conspiracy) and the Prevention of Corruption Act. The notice said since Naidu has been arrested under a non-bailable offence, he has to seek bail through court.

Naidu’s arrest comes months before Andhra Pradesh is due to go to the polls. He lost power to his arch-rival YS Jagan Mohan Reddy, who swept back to the government in 2019 winning 151 seats in the 175-member assembly.

The CID in March began the probe into the alleged scam related to APSSDC, which was formed in 2016 to provide unemployed youth training to make them employable. The previous TDP government signed a memorandum of understanding with a consortium involving Siemens Industry Software India Ltd and Design Tech Systems Pvt Ltd for executing the project worth ?3,300 crore.

Siemens Industry Software India was to set up six centres of excellence for skill development with the state paying around 10% of the total cost. The rest of the cost was to be borne by Siemens and Design Tech as grant-in-aid. No tender was allegedly invited for the project, which was executed without approval from the state Cabinet.

A statement from chief minister YS Jagan Mohan Reddy’s office in March cited the probe into the case and said it revealed that Siemens Industry did not spend a single rupee on this project, but siphoned off a major portion of ?371 crore contributed by the state. The money was allegedly diverted to shell companies, the statement said citing the CID investigation.

It cited Siemens Global Corporate Office’s internal investigation and said the project manager siphoned off the money released to shell companies and he was fired over it.

“In 2018, the ACB [anti-corruption bureau] received complaints from a whistle-blower on these allegations. However, the people in power blocked any investigation from taking place and started removing key documentary evidence from the state secretariat,” the statement said.

The probe into the alleged scam was initiated after YS Jagan Mohan Reddy was voted to power the following year.