Alleged scam in APSDC: ED serves notices to 26 persons

Vijayawada: Enforcement Directorate (ED) served notices to 26 persons in connection with the alleged scam that took place in the Andhra Pradesh Skill Development Corporation (APSDC) between 2014 and 2019.

Those who were served notices included former chairman of the APSDC Ganta Subbarao, former Director of APSSDC K Lakshminarayana and Special officer to the former secretary Nimmagadda Venkata Krishna Prasad.

Besides, 23 others were asked to present before the ED office in Hyderabad on Monday. Earlier, the APCID noticed irregularities in APSDC from 2014-19 and registered an FIR. The CID also arrested some persons and it is continuing the investigation.

The APCID has handed over the details of the Skill Development Corporation scam to the Enforcement Directorate. The ED has asked 26 persons to attend the office on Monday in Hyderabad. The ED notices created a ripple in Andhra Pradesh on Sunday. The ED has taken up the second case in the state. Earlier, the ED conducted raids on the hospitals in the State and noticed irregularities.

According to information, the APSDC has entered into an MoU with German company SIEMENS worth Rs 3,300 crore for the skill development of students studying in the private and the government colleges in State. The share of SIEMENS is 90 per cent and State government share is 10 per cent that is around Rs 330 crore.

The State government has released around Rs 371 crore for the skill development of students. The APCID in its investigation reportedly identified that Rs 241 crore was diverted to shell companies. However, APSDC former chairman Ganta Subbarao and others have claimed that the amount was spent for training of students, purchase of laptops, computers and providing facilities.

The APSDC was formed in 2015 after the TDP came to power. On the other hand, the SIEMENS has reportedly not spent its share in the skill development of the students in the State. This resulted in a suspicion as to why the State government hastily released the funds for the APSDC.

APSDC chairman Ajay Reddy `told the media that all facts will come out in the detailed investigation conducted by the ED. He said the APSDC has purchased 40,000 laptops, computers and spent crores of rupees for the training and for other expenses before he assumed charge. Designed Tech company had subcontracted a large part of this work to PVSP/Skillar Enterprise India Pvt. Ltd. (A suspected shell company). The APCID officials have noticed that fake invoices were produced in the scam and submitted to the State government. The issue of face invoices and the shell companies came to light in the Mumbai GST audit as the shell companies were formed in Pune, Maharashtra.

The APCID has alleged that the 10 per cent share of APSDC was siphoned off and former chairman, director and others were involved in it. Heads of some private companies and chartered accountants also received notices from the ED in the APSDC scam.

AP CID team after investigation lodged FIR in December 2021 and observed that prime accused Ganta Subbarao and Soumyadri Shekhar Bose played a vital role in the alleged irregularities.