Nation Crime 05 Dec 2022 ED issues notices to ...

ED issues notices to 26 persons accused in APSSDC scam

DECCAN CHRONICLE. | DC CORRESPONDENT
Published Dec 5, 2022, 2:08 pm IST
Updated Dec 5, 2022, 2:08 pm IST
The Enforcement Directorate (ED) has issued notices to 26 persons in connection with the multi-crore scam in the Andhra Pradesh State Skill Development Corporation
 The Enforcement Directorate (ED) has issued notices to 26 persons in connection with the multi-crore scam in the Andhra Pradesh State Skill Development Corporation

Vijayawada: The Enforcement Directorate (ED) has issued notices to 26 persons in connection with the multi-crore scam in the Andhra Pradesh State Skill Development Corporation (APSSDC), which took place during the term of the Chandrababu Naidu-led Telugu Desam government.

ED has asked them to appear for questioning in Hyderabad. The Crime Investigation Department (CID) had already launched a probe into the scam after it was found that funds diversions were done using shell companies.

Those who received notices include Ghanta Subba Rao, the then special secretary to the state government and the MD & CEO of APSSDC, K Lakshminarayana, the then director of APSSDC, OSD.

The CID had registered an FIR against 26 persons for misuse of Rs 241 crore of funds, including the then director of APSSDC and MD-CEO Ganta Subba Rao, retired IAS officer K Lakshmi Narayana, OSD for SDEI secretary Nimmagadda Venkata Krishna Prasad, officials and representatives of Siemens, DesignTech, Skiller, AIC etc.

State CID teams had conducted searches at the residences of Ganta Subba Rao and retired IAS officer K Lakshminarayana in Hyderabad and seized auditing files and other vital evidence related to key documents as well as documents of other companies where they were directors.

The CID conducted a thorough investigation into the financial scam involving crores of rupees of APSSDC, involving Siemens Industry Software India Ltd and Design Tech Systems Pvt Ltd.

According to reports, the MoU included provisions to set up six ‘centres of excellence’ and 36 technical skill development institutions at an estimated cost of Rs 3,356 crore, of which the technology partners would meet 90 per cent of the project cost as grant in-kind. The state government had to invest only 10 per cent of the cost.

Later, the GO was issued on the cost estimate and splitting the cost between the technology partners and the state government.

But, after this, a tripartite agreement was prepared in such a manner that it was only mentioned that the AP government would release Rs 241 crore as a grant for SISW and Design Tech to set up the skill development institutions.

The release of Rs 241 crore was done into the account of DesignTech even before the skill development institutions were set up; and when not even the valuation of the work was done.

After that, with the alleged connivance of the state government and APSSDC officials, officials of SISW and Design Tech allegedly siphoned off a major portion of the amount without providing the commensurate goods and services.

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