What's Rs 371-Cr skill development case that led to arrest of Chandrababu Naidu: Explained

In 2015, the then Chandrababu Naidu government in Andhra Pradesh signed an MoU for a Rs 3,350 Cr project for the skilling of the youth through the AP State Skill Development Corporation (APSSDC). After coming to power in 2019, the Jagan Mohan Reddy regime ordered a CID probe which found irregularities and diversion of funds in the Rs 371-cr skill development case.

Hyderabad : The arrest of TDP chief and Andhra Pradesh former CM Chandrababu Naidu by the CID police has created ripples in political circles across the country. Chandrababu was detained in Nandyala, Andhra Pradesh, in connection with the skill development case. Here's is a look the details relating to the skill development case

In 2015, the state government signed an agreement for a Rs 3,350 crore project to provide skill training to the youth. It was announced that the youth would be trained through an organization called Siemens, sounding similar to the name of a Germany company. In this project, the state government has to pay ten percent share.

However, there are allegations of diversion of Rs 240 crore in the payments of the state government. There are also allegations of evading GST through fake bills and invoices. Meanwhile, the AP State Skill Development Corporation's (APSSDC) present Chairman Konduru Ajay Reddy has complained to the AP CID that there have been irregularities in the Andhra Pradesh Skill Development case.

Cases have been registered against many people involved in the APSSDC activities during the previous TDP regime. The YCP government has ordered a CID inquiry in July 2021. However, based on this CID report, the Enforcement Directorate (ED) has focused on financial transactions. In this case, the CID had previously registered a case against 26 people including the former MD and CEO of Skill Development Corporation Ganta Subbarao and director K. Lakshminarayana.

As part of the investigation of this case, retired IAS officer Lakshminarayana was interrogated by the CID officials. It was because Lakshminarayana previously worked as OSD for Chandrababu. Lakshminarayana worked as an advisor to AP Government after retirement. He also served as the first director of AP Skill Development Corporation.

The CID searches were conducted at Lakshminarayana's house on allegations of corruption in the training centers under the skill development project. The CID has recorded key points in the remand report related to this skill development case. In June 2015, the Skill Development Corporation found irregularities in financial transactions.

According to the CID, Siemens MD Soumyadri Shekhar Bose and Design Tech MD Vikas Kanvilkar have been allocated Rs. 241 crore by the previous government. But this money was transferred to 7 shell companies by creating false invoices, it said. Also, CID said that there were irregularities in the distribution of the cost of this project between the technology companies and the government.

In 2017-18, out of Rs. 371 crore, Rs. 241 crore was embezzled, CID said in the remand report. Also, ED has issued notices to 26 people whose names have figured in CID cases in the past.