Vijayawada: 7 arrested in ESI scam

Vijayawada: Ravi Kumar, joint director of Anti-Corruption Bureau (ACB), said here on Saturday that so far seven persons were arrested in connection with the scam in the Employees State Insurance Corporation (ESIC).

Addressing the news persons here, Ravi Kumar said that the further deep investigation into the scam would reveal more details. He said that the ACB had unearthed violation of government rules and regulations in the ESI scam. "The officials colluded with the individuals and caused loss to the government exchequer," he said.

Stating that so far they had found out the involvement of 19 persons in the scam, the joint director said that the scam caused loss to the government in six issues.

Asserting that the purchases were made with the recommendation letters from the then minister K Atchannaidu, he said that the former minister and Dr Ramesh Kumar was arrested and both were produced before the magistrate.

Referring to the house motion submitted in the High Court, he said that the department would go as per the law.

It may be recalled that former director of Indian Medical Service Ch K Ramesh Kumar moved the high court in the matter.