Amravati: The High Court of Andhra Pradesh has granted bail to N Chandrababu Naidu, the Chief Minister and TDP leader for a period of four weeks, in connection with the skill development case. Naidu was arrested on September 9 due to his alleged involvement in a scam ₹3,300 crore related to the Andhra Pradesh Skill Development Corporation (APSSDC) which reportedly occurred during his time as Chief Minister.
When police arrived at Naidus residence around 3 am on the day of his arrest they faced opposition from a gathering of his party workers making it difficult for them to apprehend him. After three hours he was taken into custody. The Crime Investigation Department (CID) of the Andhra Pradesh Police initiated an investigation into the matter this year. The investigation came after issuing notices to Arja Srikanth, an officer of the Indian Railway Traffic Service who served as CEO of APSSDC in 2016. These notices were based on statements from an accused turned approver and testimonies, from three IAS officers.
Established in 2016, APSSDC aimed to empower youth by providing them with skill training to improve their employability.
Based on the findings of the CID during Chandrababu Naidu’s tenure the government entered into a memorandum of understanding (MoU) for a project of ₹3,300 crore. This MoU included a consortium, with Siemens Industry Software India Ltd and Design Tech Systems Pvt Ltd.
Siemens Industry Software India Ltd was responsible for establishing six centers of excellence for skill development, with the Andhra government contributing about ten percent of the total project cost. The remaining funds were to be provided as a grant-in-aid by the two companies. However, the CID’s investigation revealed that the project was initiated without following the standard tendering process, and the state cabinet allegedly did not approve it.
The CID probe further pointed to Siemens Industry Software India allegedly failing to invest any of its own resources in the project and diverting a substantial portion of the ₹371 crore allocated by the state to various shell companies. The CID alleged that the funds meant for the project were funnelled into these shell companies.