Andhra Cabinet Gives Nod for CBI Probe into Alleged Corruption during Naidu's TDP Rule

The Andhra Pradesh government on Thursday decided to order a probe by the CBI into alleged corruption in various schemes during the previous Chandrababu Naidu dispensation, causing a loss running into hundreds of crores of rupees.

The state Cabinet, which met today under the chairmanship of Chief Minister YS Jagan Mohan Reddy, approved the recommendations made by a Cabinet subcommittee. The subcommittee, headed by Finance Minister Buggana Rajendranath, conducted a preliminary inquiry into schemes like 'Chandranna Tohfa', 'Chandranna Christmas Gift', 'Chandranna Sankranti Kanuka' and also the AP Fibrenet project and submitted its report.

"The Cabinet approved the subcommittee report and decided to order a detailed investigation by the CBI," said Information and Public Relations Minister Perni Venkataramaiah.

A minister claimed over Rs 150 crore was swindled in the name of various "festival gift" schemes by the previous regime.

In the AP Fibrenet project, which was meant to provide internet and telephone services to all households, costs were inflated and a person with fake certificates appointed as head of the project, the minister alleged. Also, inferior quality set top boxes were purchased from different companies, sidestepping the lowest bidder (a South Korean firm) that came forward to supply high-end STBs at a lower price, it was alleged.

"This alone cost hundreds of crores of rupees to the exchequer while the project remained accomplished," a minister pointed out.

Venkataramaiah said the fibre grid project was allotted to unqualified companies and about Rs 700 crore of corruption has taken place. He added that the project was allotted to Terra Software, a company owned by Vemuri Harikrishna Prasad who is very close to the TDP leadership and also accused in a case of EVM tampering.

“The contract was given to Terra Software setting aside the bid of a central government institution although it was the lowest bidder. The sub-committee also found irregularities in procurement and distribution of set top boxes,” he added.

The CBI will also be asked to probe the payments made to Heritage Dairy, owned by Chandrababu's family, for supplying buttermilk.

(With inputs from PTI)