Chandrababu Naidu arrested: Understanding the skill development scam

Telugu Desam Party (TDP) Chief Chandrababu Naidu was arrested here for alleged corruption on Saturday, Press Trust of India (PTI) reported. The former chief minister was taken into custody by the Crime Investigation Department (CID) around 6 am from R K Function hall at Gnanapuram in Nandyala town.

The Deputy Superintendent of Police of the CID's Economic Offences Wing (EOW), M Dhanujayudu served a notice to Naidu which read, "It 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 offence."

Why has Chandrababu Naidu been arrested?

Naidu has been arrested in a multi-crore Andhra Pradesh State Skill Development Corporation (APSSDC) scam. Several other TDP leaders have also been put under house arrest following the arrest of Naidu, a Hindustan Times (HT) report said.

As a large police contingent led by range DIG Raghurami Reddy and CID arrived at R K Function Hall for the arrest, many TDP supporters tried to prevent the police from the arrest. Initially, even the SPG guards serving the former CM tried to resist the police from reaching Naidu.

What are the charges against Chandrababu Naidu?

Former Andhra Pradesh CM has been arrested on non-bailable charges under sections 120(8), 166, 167, 418, 420, 465, 468, 471, 409, 201, 109 r/w 34 & 37 IPC and other sections of the Prevention of Corruption Act, 1988.

What is the AP State Skill Development Corporation Scam?

The Crime Investigation Department of the Andhra Pradesh Police started looking into an alleged scam worth Rs 3,330 crore during the previous TDP regime in March. APSSDC was established in 2016 during the TDP regime with an aim to empower unemployed youth by way of upskilling them through proper training.

What has the investigation revealed?

The investigation has found several irregularities in the manner in which the APSSDC was being managed. The police found that the project was initiated without the standard tendering process. The state cabinet had not approved the project. Moreover, Siemens Industry Software India, a firm involved in the project, allegedly failed to invest any of its own resources and instead diverted a significant portion of Rs 371 crore allocated by the state government to various shell companies, the HT report said.

Various shell companies, namely Allied Computers, Skillers India Pvt Ltd, Knowledge Podium, Cadence Partners, and ETA Greens, were used to transfer money intended for the project.