AP Skill Development Corp established by flouting rules, says CID; Chandrababu Naidu named A1

Investigation has led to the conclusion, prime facie, that the then TDP government's head and highest executive of the regime, Chandrababu Naidu had orchestrated the entire scheme, he said.

Amaravati: The Andhra Pradesh Crime Investigation Department on Wednesday said as many as 13 signatures of TDP chief N Chandrababu Naidu were found in various documents pertaining to the Skill Development Corporation, which was set up by flouting the rules.

Speaking to reporters here, AP CID chief N Sanjay said owing to the alleged role played by Naidu in the ‘scam’, he was arraigned as accused one (A1) in the case. Initially, he was named as A37.

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Due procedure was not followed when the corporation was established, and funds were channeled to private parties through the government entity.

Investigation has led to the conclusion, prime facie, that the then TDP government’s head and highest executive of the regime, Chandrababu Naidu had orchestrated the entire scheme, he said.

To set up a corporation, it is mandatory to obtain the Cabinet’s approval, which was not followed, the official pointed out.

“In the wake of widespread speculation over the Skill Development Corporation scam in various fora such as media houses, political parties and the general public, it is pertinent to set the record straight,” he said, noting that Naidu was the chief architect of this scam.

The skill development case pertains to setting up of clusters of centres of excellence (CoE) in the southern state with the total estimate of the project valued at Rs 3,300 crore but allegedly ended up causing a loss in excess of Rs 300 crore to the state exchequer.

Before the private entities, Siemens Industrial Software India and Design Tech System, involved in this project could spend any money, the state government released an advance of Rs 371 crore, which is 10 percent of the government’s commitment.

Citing reasons for naming the TDP chief as A1, he said Naidu set up the Corporation without getting the Cabinet nod and delegated key responsibilities to private individuals like Ganta Subba Rao by appointing him the head of the corproration.

Further, Sanjay noted that Naidu had personally sanctioned Rs 371 crore in a Finance department note.
The Skill Development Corporation was set up by a government order (GO), which mentioned that funding would be in the ratio of 90:10. But when the actual agreement was observed, there was no mention of the 90 percent component.

Further, the value of Siemens Industrial Software India’s software, which was bought by the Corporation for just Rs 58.8 crore was falsely mentioned in the account books as Rs 2,700 crore.

Sanjay added that Rs 241 crore funds are proceeds of crime in the case, which were routed through several layers to around 30 companies by involving private persons.

Naidu was arrested in connection with the fraud case involving siphoning off of funds from the Skill Development Corporation, leading to a loss of over Rs 300 crore to the state government.