Chandrababu Naidu arrested: All you need to know about skill development scam

The probe into the skill development centres, which led to the arrest on Saturday of former Andhra Pradesh chief minister N Chandrababu Naidu was haunting the TDP leader since he lost power in 2019.

The case involved alleged misappropriation of funds while setting up a centre of excellence and five technical skill development centres from 2015 to 2019 when Naidu was chief minister.

The state government had entered into an agreement with Siemens Industrial Software India and Design Tech Systems to set up the centres.

The private entities were to contribute 90 per cent of the funds to set up the centres and running skill development programmes. The government was to provide the remaining 10 per cent.

After the YSRCP came to power in 2019, a CID probe was initiated into the role of the private companies and the previous government vis-à-vis the centres.

CID investigation

The probe found that the private entities allegedly did not spend their share of the cost while the government’s share of 10 per cent — amounting to Rs 371 crore — was allegedly misappropriated.

A CID statement in March said this while prosecuting a former employee of Siemens Industrial Software.

According to investigators, GVS Bhaskar, a former employee of Siemens Industrial Software, allegedly prepared a fake detailed project report (DPR) with overvaluation, keeping a margin of more than Rs 200 crore out of the Rs 371 crore released by the government.

According to investigators, he allegedly inflated the valuation of the project to Rs 3,300 crore.

However, the actual cost to Siemens Industrial Software India’s software was only Rs 58 crore, officials said.

Suman Bose, the then MD of Siemens Industrial Software India, and Design Tech Systems MD Vikas Vinayak Khanvelkar are said to have met then chief minister Naidu in 2014-15.

Government officials

It was alleged that former special secretary Ganta Subba Rao and former IAS officer K Lakshminarayana played key roles in the programme.

CID officials said the misappropriated money was funnelled into shell companies such as Allied Computers (Rs 60 crore), Skillers India, Knowledge Podium, Cadence Partners and ETA Greens.

According to reports, former finance secretary K Sunitha objected to the release of funds but was overruled.

When the CID contacted the German headquarters of Siemens, the company clarified that Bose, former managing director of Siemens Industrial Software India, acted on his own, leading to his sacking.

Naidu has been arrested on charges including 120B (criminal conspiracy), 420 (cheating and dishonestly inducing delivery of property) and 465 (forgery).

The CID has also invoked the Prevention of Corruption Act against him.

Earlier, the Enforcement Directorate arrested former Siemens Industrial Software India’s managing director Bose and Khanvelkar for alleged money laundering as well as diversion and misutilisation of funds.

(With agency inputs)