N Chandrababu Naidu is the former Chief Minister of Andhra Pradesh.
Hyderabad:
Ex-Andhra Pradesh Chief Minister N Chandrababu Naidu has been remanded to judicial custody for a fortnight in connection with a Rs 371 crore corruption fraud case. The case concerns the Andhra Pradesh State Skill Development Corporation, which was formed when Mr Naidu’s Telugu Desam Party was in power.
Mr Naidu – who is being taken to jail in Rajahmundry – was produced before an anti-corruption court in Vijayawada this morning under tight security. The veteran politician told the court he was wrongly accused of ‘political gain’ and cited legal technicalities to claim there was ‘no substantiated accusation’.
The TDP leader’s lawyers argued that since he was the Prime Minister at the time of the alleged crimes, a sanction for investigation – “a public servant in the performance of official duties” – could only be given by “the person who is the Prime Minister Minister removed from office. …that is, the Governor of Andhra Pradesh”.
Since this did not happen, “there is a statutory violation and the remand must be dismissed,” Mr Naidu – who has been termed ‘main conspirator and beneficiary’ of the alleged scam by the police – had told the court.
READ | Andhra police arrest TDP chief N Chandrababu Naidu in corruption case
The Crime Investigation Department of Andhra Pradesh Police said Mr Naidu, who is 73 years old, was uncooperative during interrogation and vaguely replied that he could not remember certain matters.
The remand report also said that Mr Naidu refused an offer of a helicopter to take him from Nandyal, where he was arrested, to the court in Vijayawada. He was then taken by road and the police have termed the obstruction by TDP workers as “an intimidation of law officials on account of his position”.
READ | Chandrababu Naidu ‘Uncooperative, gave vague answers’: Andhra police in court
“He was asked questions based on files that form part of the evidence. But he did not cooperate with all questions and answered vaguely: that he could not remember the facts. In this regard, the report was prepared in the presence of the mediators and duly confirmed by him,” prosecutors said.
However, the remand report acknowledged that Mr Naidu does not pose a flight risk.
What is the Skill Development Corporation scam?
The multi-crore scam involves money allocated by the state to the Department of Skill Entrepreneurship and Innovation and included in the budget for 2015-16.
According to the CID, investigations revealed serious irregularities, particularly before any expenditure was made by private entities, the then government provided an advance of Rs 371 crores, which amounts to the entire 10 percent commitment of the government.
READ | The Rs 371-Crore scam that led to Chandrababu Naidu’s arrest: Explained
Most of the money advanced was routed to shell companies through fake invoices, without any actual delivery or sale of the items mentioned in the invoices, officials said.
CID officials have also said that senior government officials, including the then Chief Secretary IYR Krishna Rao, have made notes in related files. They had objected to the premature release of funds to Design Tech, noting that it was done at the behest of N Chandrababu Naidu.
