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AP Skill Development Corporation Scam | Report Scams

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courtGovernment FraudAndhra Pradesh

AP Skill Development Corporation Scam

The case involves alleged financial irregularities and misappropriation of funds linked to the Andhra Pradesh State Skill Development Corporation (APSSDC) Siemens Project, a public-private partnership meant to set up 40 skill development centres across Andhra Pradesh for technical training. Investigators alleged that government funds released for the project were diverted, siphoned off, and laundered using shell companies, fake invoices, and multi-layered transactions.

State

Andhra Pradesh

First reported

June 2021

Amount alleged

₹3,300+ Cr (alleged)

Project

APSSDC Siemens Project

Agencies involved

Andhra Pradesh CID, Enforcement Directorate (ED)

Total assets attached

Rs. 54.74 crore

Arrests mentioned

Vikas Vinayak Khanvelkar, Suman Bose, Mukul Chandra Agarwal, Suresh Goyal, and N Chandrababu Naidu (previously arrested and released)

Courts involved

Special PMLA Court in Visakhapatnam, Vijayawada ACB Court

Status

ED filed a supplementary prosecution complaint; main accused cleared of involvement by ED and acquitted by court

The full story

Everything you need to know about this case, in one place.

The Andhra Pradesh CID registered a case naming various corporate representatives and former officials as accused. The Enforcement Directorate (ED) subsequently launched a money laundering investigation under the PMLA, leading to the arrest of several individuals including the Managing Director of Designtech Systems Private Limited and the former Managing Director of Siemens Industry Software India Private Limited, along with close associates and entry providers.

During the previous political administration, the opposition leader and current Chief Minister, N Chandrababu Naidu, was named as an accused by the CID, arrested in September 2023, and detained in Rajamahendravaram jail for 53 days. However, subsequent developments included the CID filing a final report stating charges against him were a mistake of fact, leading to an acquittal by a Vijayawada ACB court. Furthermore, the ED submitted chargesheets and a supplementary prosecution complaint stating that their investigation found no evidence of Naidu's involvement or role in handling proceeds of crime.

Not yet reported: The exact total alleged financial scam amount across the entire project is not specified, though asset attachments totalling Rs. 54.74 crore are reported.

Where the case stands

The latest position in the reports we read.

The ED has filed a supplementary prosecution complaint before the special PMLA court in Visakhapatnam, which took cognizance of it. Meanwhile, the criminal charges against Chandrababu Naidu were closed by the trial court after the CID filed a report stating charges against him were a mistake of fact.

Who was affected

Described in general terms; we do not name victims.

The state government and public funds of Andhra Pradesh were affected through the alleged diversion of money meant for setting up 40 technical training and skill development centres.

Timeline

Key dates as reported, oldest first.

2014 to 2019Period during which the APSSDC Siemens Project was active.

December 2021The Andhra Pradesh CID registered an FIR naming skill development corporation officials and project implementation company representatives.

December 2022The ED registered an Enforcement Case Information Report (ECIR) and initiated an investigation.

April 2023The ED attached fixed deposits worth Rs. 31.20 crore belonging to Designtech Systems Private Limited.

May 1, 2023The ED filed its main prosecution complaint before the special PMLA court in Visakhapatnam.

September 2023The AP CID filed a memo naming Chandrababu Naidu as an accused, leading to his arrest and 53-day detention.

January 12A Vijayawada ACB court accepted a CID final report and granted Naidu acquittal from criminal charges.

January 28The special PMLA court in Visakhapatnam took cognizance of a supplementary prosecution complaint filed by the ED.

How the scam worked

The method described in the reports.

Funds were released by the Andhra Pradesh government to various companies to implement the APSSDC Siemens Project.
Representatives of participating companies and close associates diverted the funds using shell or defunct entities.
The accused utilized multi-layered transactions and bogus invoices under the pretext of supplying materials and services.
The services of entry providers were employed to further route the diverted funds, with commissions paid to those providers.

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Sources and further reading

Optional. The full story is above; these are the original reports it was prepared from.

etvbharat.comOriginal report timesofindia.indiatimes.comOriginal report deccanherald.comOriginal report Primary source / searchOpens via Google News

Prepared by Report Scams, with the help of AI, from the published reports listed above. Check those reports for the latest. Cases here describe allegations. An FIR, arrest or charge is not a finding of guilt. To report a mistake, or to ask for a correction or removal, write to our Grievance Officer. See also the Safe Posting policy.