Chandrababu Naidu Arrested: What Is The Skill Development Scam All About?

Former Andhra Chief Minister N Chandrababu Naidu was arrested by the CID around 6 am on Saturday at Gnanapuram in Nandyala town in a corruption case.

He has been arrested under relevant IPC sections, including Sections 120B (criminal conspiracy), 420 (cheating and dishonestly inducing delivery of property) and 465 (forgery), according to the notice. The Andhra Pradesh CID has also invoked the Prevention of Corruption Act against him.

The former CM himself had predicted days ago that he would be arrested and attacked. Hence, the development has not come as a surprise.

What is the alleged scam all about?

• The skill development programme was envisaged under the then Telugu Desam Party government between 2014 and 2019. An investigation into the issue was launched by the CID in March 2023.
• Back in 2016, under the administration of the TDP government, APSSDC was founded with the primary objective of empowering unemployed young individuals by delivering skill training programs aimed at boosting their job prospects.
• According to officials, GVS Bhaskar, an accused in the case and former employee of Siemens Industrial Software, inflated the valuation of the project, which involved Siemens Industrial Software India and Design Tech Systems, to Rs 3,300 crore. However, the cost of Siemens Industrial Software India's software was only Rs 58 crore.
• The inquiry stems from notifications sent to Arja Srikanth, a former Indian Railway Traffic Service (IRTS) officer who served as the CEO of APSSDC in 2016. These notifications were prompted by statements from a previously accused individual who has since become a witness cooperating with the authorities, as well as testimonies given by three IAS officers.
• Suman Bose, the then MD of Siemens Industrial Software India, and Design Tech System MD Vikas Kanwilkar allegedly met the then Chief Minister Chandrababu Naidu for the project in 2014-15.
• As part of the agreement, Siemens Industrial Software India and Design Tech Systems were to contribute 90 per cent of the funds for the programme with the balance 10 per cent coming from the state government. However, neither company spent a single penny while the state government's share of 10 per cent - amounting to Rs 371 crore - was allegedly misappropriated, the CID stated.
• It is alleged that former special secretary to the state government Ganta Subba Rao and former IAS officer K Lakshminarayana had played key roles in the programme. The Crime Investigation Department (CID) identified Lakshminarayana as a close friend of Naidu, according to a PTI report.
• CID officials claimed that 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 Sunita had objected to the release of funds but senior government officials overruled her.
• When the CID contacted the German headquarters of Siemens, it clarified that Bose had acted on his own volition, which resulted in his services being terminated, the official told the news agency.
• Overall, the CID investigation revealed a series of improprieties. Notably, the investigating agency has found out that the project was approved without getting the cabinet approval and initiated without formal tendering, Hindustan Times reported.
• The Enforcement Directorate has also launched a probe into the alleged scam and has issued notices to 26 people.