Skill Development Scam registered within 2 months of Naidu forming government
VIJAYAWADA: Telugu Desam chief Nara Chandrababu Naidu was arrested in Rs. 371 Crore AP Skill Development Scam early on Saturday morning at Nandyal by the AP Criminal Investigation Department (CID). Naidu is facing allegations of corruption and misleading the cabinet in a scam that has rocked the state.
Interestingly, the case came to light in June 2018 when a government whistleblower had reported this skill development scam to the Anti-Corruption Bureau (ACB) in the state. However, initial investigations into these claims were set aside.
The Skill Development Corporation scam, involving a staggering sum of Rs 371 crore of government funds, has sent shock waves throughout the region. The allegations against Naidu and others involved in the case include manipulating contracts, misappropriating public money, and orchestrating a fraudulent scheme under the guise of a skill development corporation.
After YS Jagan Mohan Reddy assumed charge as AP Chief Minister, the YSRC government concentrated on this scam. The government agencies such as GST, Intelligence, IT, ED, SEBI, among others, have all conducted thorough investigations into this scam. The authorities have successfully repatriated looted funds that were stashed abroad.
This scandal got registered just two months after Chandrababu Naidu assumed power in June 2014. The project in question had a total cost of Rs. 3,356 crores, with the government contributing 10 per cent, while Siemens committed to 90 per cent of the funding. Siemens, a major player in this scandal, conducted an internal inquiry and provided a statement under Section 164 of the Criminal Procedure Code (CrPC) before a Magistrate. Siemens emphasised that their company had no involvement in the Joint Venture (JVO) or the Memorandum of Understanding (MoU) issued by the government.
During the investigations, the sleuths found that one of the central issues in this case is the way a note from Skill Development, showing the estimated cost as a Detailed Project Report (DPR), was presented to the cabinet, bypassing established government procedures.
This irregularity, combined with the swift approval and release of funds, has raised serious questions regarding adherence to rules, regulations, and due process. The investigation further found that the contract and government orders appear to be at odds, as funds were released without a clear contract.
Allegations suggest that Chandrababu Naidu gave orders for the immediate release of funds, even when objections were raised by the finance department officials. Key officials within the government, including the Finance Principal Secretary and the Chief Secretary, have reportedly played a role in facilitating the release of funds. However, the whereabouts of these funds remain unknown.
Interestingly it has also come to light that over 70 transactions involving this money occurred through shell companies and in a troubling twist, note files related to the project were allegedly destroyed when these investigations commenced. Further complicating matters, companies such as PVSP/Skiller and DesignTech, which played a significant role in the Skill Scam, have claimed CENVAT (Central Value Added Tax) without paying service tax. Suspicion arose when GST officials noticed irregularities in the company's transactions, which were eventually revealed to involve money transfers through Hawala channels as early as 2017.
Top individuals involved in this massive scam have been recently raided and arrested by the ED. Former MD of Siemens India Software India Pvt Soumyadri Shekhar Bose, Designtech Systems Pvt Ltd Vikas Vinayak Khanwilkar, and Former Financial Advisor Mukul Chandra Aggarwal have been arrested. Suresh Goyal, authorised signatory of Skiller Enterprises India Pvt Ltd, is also among those arrested. A case of misuse of funds and money laundering has been registered, investigation is under progress and now Naidu was arrested in the same case.
