The FiberNet project is meant to provide Internet and telephone services to all households in the state, as part of the Bharat Net project of the Government of India.
The Centre initially provided financial assistance of ₹ 3,840 crore for the FiberNet project under the National Optic Fibre Network.
The Crime Investigation Department (CID) of Andhra Pradesh has registered an FIR on the alleged irregularities in AP State FiberNet Limited (APSFL), putting the sum involved at ₹ 321 crore.
In the FIR registered on September 9, the CID has named 16 persons and two companies as the accused in the case.
The FOR says, APSFL Chairman P Goutham Reddy, the CID said Vemuri Harikrishna Prasad, then a member of the e-Governance Authority governing council, colluded with Tera Software Limited to ensure the tender for ₹ 321 crore was illegally awarded to the company.
The company lacked the necessary qualifications for the award of the tender, the FIR said.
Besides Vemuri Harikrishna Prasad, the CID named then managing director of Infrastructure Corporation of AP K Sambasiva Rao, Tera Software chairman SSR Koteswara Rao, managing director T Gopi Chand and six other directors as accused in the case.
Also, six directors of another company Himachal Futuristic Communications Limited were listed as accused, along with unnamed government officials and others.
