Former CM of Andhra Pradesh Chandrababu Naidu arrested in skill development case: Here is all about the multi-crore skill development scam

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  • The Criminal Investigation Department (CID) serves an arrest warrant to TDP chief and former Andhra Pradesh CM N Chandrababu Naidu. 
  • Stating that it is a non-bailable offense, the notice said Chandrababu Naidu cannot be released on bail. 
  • Former chief minister of Andhra Pradesh, was arrested by the Nandyal Police in the early hours of Saturday 
  • He is being shifted to Vijayawada. 

N Chandrababu Naidu, Telugu Desam Party president and former chief minister of Andhra Pradesh, was arrested by the Nandyal Police in the early hours of Saturday, a party spokesperson said.

The police faced stiff resistance from the TDP cadres who gathered there in large numbers. Even the SPG forces guarding Naidu did not allow the cops, saying they could not allow anybody to reach Naidu till 5:30 a.m. as per the rules. Finally, around 6 a.m., the police knocked on the doors of Naidu’s vehicle, brought him down and arrested him. Naidu was taken into the vehicle. He is being shifted to Vijayawada.

As per the notice issued under Section 50 (1) (2) of the Criminal Procedure Code, the cops informed Naidu that he was being arrested under various Sections of IPC and other sections of the Prevention of Corruption Act, 1988. Stating that it is a non-bailable offence, the notice said he cannot be released on bail. “You may seek bail through court only,” the notice served by CID deputy superintendent of police M Dhanunjayudu, said.

What is the AP State Skill Development Corporation scam? 

In March, the Crime Investigation Department of the Andhra Pradesh police initiated a probe into an alleged scam worth ₹3,300 crore in the APSSDC during the previous Telugu Desam Party regime. The investigation follows notices issued to Arja Srikanth, a former Indian Railway Traffic Service (IRTS) officer who was the CEO of APSSDC in 2016, based on statements from an accused turned approver and depositions by three IAS officers.

In 2016, during the tenure of the TDP government, the APSSDC was established with the aim of empowering unemployed youth by providing skill training to enhance their employability. The preliminary investigation by the CID revealed:

  • The TDP government entered into a Memorandum of Understanding (MoU) for a project valued at ₹3,300 crore.
  • This MoU involved a consortium with Siemens Industry Software India Ltd and Design Tech Systems Pvt Ltd.
  • Siemens Industry Software India was tasked with establishing six centers of excellence for skill development.
  • The state government was supposed to contribute around 10% of the total project cost, while Siemens and Design Tech would provide the remaining funds as grant-in-aid.

The investigation uncovered several irregularities:

  • Lack of tender process: The project was initiated without following the standard tendering process.
  • Bypassing Cabinet approval: The state cabinet did not provide approval for this project.
  • Misappropriation of funds: Siemens Industry Software India allegedly failed to invest any of its own resources in the project and instead diverted a substantial portion of the ₹371 crore allocated by the state to various shell companies.
  • Shell companies: The funds intended for the project were funneled into shell companies, including Allied Computers, Skillers India Pvt Ltd, Knowledge Podium, Cadence Partners, and ETA Greens.
  • Siemens Global Corporate Office initiated an internal inquiry into the project and discovered that the project manager had misappropriated the government-allocated funds to shell companies as hawala transactions. Consequently, the project manager was dismissed.

Nara Chandrababu Naidu also known as Chandrababu Naidu or CBN, is an Indian politician and the current Leader of Opposition in the Andhra Pradesh Legislative Assembly. Naidu served as Chief Minister from 1995 to 2004 and as Opposition Leader from 2004 to 2014 in the erstwhile Andhra Pradesh. He held the position of Chief Minister for the third time in the bifurcated Andhra Pradesh from 2014 to 2019. Presently in his eighth term as a legislator, he holds the record for being the longest-tenured Chief Minister in United Andhra Pradesh. He is the National President of the Telugu Desam Party (TDP).

(With inputs from agencies)

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