Andhra ex-minister Atchannaidu arrested in ESI scam

The Anti-Corruption Bureau (ACB) sleuths have arrested TDP leader Atchannaidu in connection with alleged irregularities at ESI hospitals. ACB officials are scheduled to hold a press conference at Vijayawada and Visakhapatnam regarding the matter.

Amaravati: Former Andhra Pradesh minister and opposition Telugu Desam Party (TDP) leader K. Atchannaidu was arrested on Friday by the Anti-Corruption Bureau (ACB) in the ESI scam, with his party dubbing it "political vendetta".

The opposition member of Legislative Assembly was taken into custody from his house in Nimmada village in Srikakulam district around 7.30 am for his alleged involvement in the irregularities in the procurement of medicines and equipment for Employees' State Insurance (ESI) hospitals during the earlier TDP rule.

The ACB announced that six accused, including Atchannaidu, were arrested who will be presented before a magistrate in Vijayawada by evening.

Atchannaidu is the first top TDP leader to be arrested in a corruption case since the YSR Congress Party (YSRCP) came to power a year ago.

However, the manner in which the key TDP leader was arrested sparked protests from the main opposition party with its president and former chief minister N. Chandrababu Naidu alleging that Atchannaidu was 'kidnapped'.

The Tekkali MLA's wife Vijaya Madhavi alleged that 200 to 300 people barged into their house by scaling the compound wall and whisked him away.

Atchannaidu's nephew and Srikakulam MP K. Rammohan Naidu alleged that his uncle was arrested without prior notice or information. He vowed to fight a legal battle in the case, saying their family is known for a clean public record. He termed the arrest "political vendetta" by the Jagan Mohan Reddy government.

Atchannaidu is the TDP deputy leader in the Assembly and considered a confidant of Chandrababu Naidu. He is the younger brother of senior TDP leader and former union minister K. Yerran Naidu, who died in a road accident in 2012.

In February this year, the Vigilance and Enforcement Department claimed to have unearthed a major scam in the procurement of medicines and other items worth over Rs 975 crore in ESI hospitals by the Insurance Medical Services (IMS) Directorate in the last five years.

Atchannaidu, who was minister for labour and employment in the previous TDP government, allegedly directed then IMS director to issue work orders to a company named 'Tele Health Services Pvt Ltd', without inviting open tenders.

The department pointed out that three officials - Dr B Ravi Kumar, C K Ramesh Kumar and G Vijaya Kumar -- who worked as directors of IMS between 2014 and 2019 -- had placed purchase orders for drugs, medical equipment, surgical items, lab kits and furniture worth Rs 975.79 crore by violating procedures and guidelines.

The purchases were allegedly made without constituting drug procurement committee and without calling for open tenders, causing huge loss to the government exchequer.

It said the directors had procured most of the drugs under non-rate contract instead of rate contract.

ACB Joint Director Ravi Kumar told reporters on Friday that Atchannaidu was among the six persons arrested, including Ramesh Kumar in Tirupati and Vijay Kumar in Rajahmundry.

He alleged the procurements were made on the basis of nomination and not through e-procurement and the medicines and equipment bought by paying 50 to 130 per cent more than their actual prices.

Atchannaidu had earlier denied any wrongdoings. He claimed that his move to replicate the telehealth services model of Telangana was twisted out of context and misinformation was launched against him. "I am ready to face any probe," he had said.

Meanwhile, TDP president and former chief minister N. Chandrababu Naidu blamed the Jaganmohan Reddy government for "targeting and harassing" Atchannaidu because of his relentless fight against the ruling party for its excesses and sand, land and liquor scams.

Chandrababu asked what was the need to use 300 men to raid Atchannaidu residence without prior intimation to his family members. "In an inhuman way, the officials did not allow the TDP leader to take along his medicines as he was resting at his home after recently undergoing a surgery," the TDP chief said

He alleged that Chief Minister Jagan Mohan Reddy was "going out of control and his sadism was reaching new peaks with each passing day".

The former chief minister said Jagan Reddy's "frustration" was evident as he was not confident of facing the debates in the Budget session of Assembly beginning on June 16.

IANS Report