[Skill Development Program Scam] Prima Facie Charges Made Out Against N Chandrababu Naidu: Special ACB Court

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Synopsis

Allegedly, Naidu, in pursuance of criminal conspiracy, while holding his office as Chief Minister colluded with other accused to commit misappropriation of government funds to the tune of Rs 279 crores

In a significant development, a special court in Vijayawada, tasked with adjudicating cases investigated by the Anti-Corruption Bureau (ACB) of Andhra Pradesh, on Sunday held that a prima facie case of cheating, criminal breach of trust, forgery, and corruption was made out against former Chief Minister N Chandrababu Naidu in connection with the skill development program scam case.

Special Judge B.S.V. Himabindu concluded that the material on record established a prima facie case against Naidu, potentially implicating him in offenses under the Indian Penal Code (IPC) and the Prevention of Corruption Act.

The case against Naidu pertains to his alleged involvement in criminal conspiracy and collusion with others, leading to the misappropriation of government funds amounting to a staggering Rs 279 crore during his tenure as Chief Minister of Andhra Pradesh.

Allegedly, government funds originally intended for a skill development project were funneled into various shell companies without executing any work or providing competent service. A tripartite agreement, allegedly in violation of government orders, resulted in the release of Rs. 370 crore by the Government of Andhra Pradesh.

In a report submitted by the Chairman of Andhra Pradesh State Skill Development Corporation (APSSDC), it was claimed that Naidu in collusion with his henchman G.Subba Rao and K.Lakshmi Narayana, IAS Retired, MD & CEO, Director for APSSDC, and other accused of Siemens Industry Software (India) Private Limited and DesignTech System Private Limited approved the budget of 370 crores even though adverse remarks/ comments noted by the officials of the government.

The report suggested that officials of Siemens Industry Software (India) Private Limited and DesignTech System Private Limited misappropriated at least Rs 241 crore out of these Rs 370 crore, in the name of the Skill Development project, failing to fulfill their obligations under the project.

The court's order reads, "There is prima facie material to suffice the nexus of accused no.37 with accused nos.1, 2,6,8, 38 and other representatives of shell companies. Similarly there is prima facie sufficient material eliciting the role of accused no.37 (Naidu) in approval of Skill Development Project and its activities to attract the offences under Secs.409 IPC, and Secs.13 (2) r/w 13 (1) (c) and (d) of P.C.Act".

With regard to other offences, the court noted that it could only proceed with the question as to whether the allegations would amount to offence which was alleged against Naidu and not beyond when read together with Sec.109 and 120-B of IPC.

The court held that "the material on record prima facie made out the case against Naidu for the alleged offences under Secs.418, 420, 465, 468, 471, 409, 201, 109 r/w 34 & 37, 120-B IPC and Secs.12, 13 (2) r/w 13 (1) (c) and (d) of Prevention of Corruption Act, 1988," held the court. 

As a consequence of these findings, Naidu has been remanded to 14 days of judicial custody.

However, the court has decided to house him in the well-equipped Central Prison, Rajamahendravaram, considering the security concerns raised by the former Chief Minister, who enjoys Z plus security provided by the National Security Guard (NSG).

Case No.: Cr.No.29/2021 of CID P.S., A.P., Manqalaqiri