Assets linked to executives of Siemens Industry Software (India) and DesignTech Systems have been attached. Former Chief Minister Chandrababu Naidu was arrested by the CID in connection with the scam and was granted bail last year.
New Delhi: In a significant development in the ongoing Andhra Pradesh skill development scam, the Enforcement Directorate (ED) has attached assets worth ₹23.54 crore connected to executives of Siemens Industry Software (India) and DesignTech Systems. This action is part of the agency’s investigation into allegations of misappropriation of government funds in a project managed by the Andhra Pradesh State Skill Development Corporation.
Chandrababu Naidu, the former Chief Minister of Andhra Pradesh, was arrested by the Criminal Investigation Department (CID) last September in relation to this case, although he was not in power at the time. He was granted bail by the high court in November. However, ED sources have confirmed to ThePrint that they have not yet found any evidence linking Naidu to the alleged financial misconduct.
“No facts have emerged so far linking his role in this case. A major portion of the investigation has been concluded, and no role or connection of Chandrababu Naidu has been found yet,” an ED official disclosed, requesting anonymity.
The latest attachment of properties brings the total value frozen by the ED in this investigation to ₹54.74 crore. The seized assets include a mix of movable properties, such as bank balances and shares, as well as immovable properties located in Delhi NCR, Mumbai, and Pune.
The ED’s inquiry stems from an FIR filed by the CID against DesignTech Systems and others for allegedly siphoning off government funds intended for setting up technical skill development institutes and centres of excellence in the state. According to the CID, the offences occurred between 2015 and 2019, during Naidu’s tenure as Chief Minister. The then-additional director general of CID, N. Sanjay, claimed that there was prima facie evidence indicating Naidu’s involvement in the misappropriation of approximately ₹371 crore from the Andhra Pradesh Skill Development Corporation.
The ED’s investigation has revealed a money trail of ₹151 crore associated with the two private firms and their executives. It identified key figures in the scheme, including Vikas Vinayak Khanvelkar, Managing Director of DesignTech Systems, and Soumyadri Sekhar Bose, former managing director of Siemens Industry Software. Along with their associates, they allegedly diverted funds through a network of shell companies using fraudulent invoices for nonexistent services and materials.
Mukul Chandra Agarwal, identified as a former financial advisor and authorized signatory of Skillar Enterprise India Private Limited, is accused of facilitating the diversion of funds through subcontracting arrangements that were not part of the original government contract. Chartered accountant Suresh Goyal was also implicated in the scheme, helping to misappropriate substantial sums of government money.
Last March, the ED arrested four individuals linked to the case and estimated that a total of ₹241 crore had been siphoned from the state exchequer. The agency stated at the time that its investigation had uncovered a web of shell companies allegedly used to divert government funds under the guise of providing software, hardware, and other services without any legitimate transactions taking place.
As the investigation continues, the ED is under pressure to clarify the extent of any involvement by high-profile political figures, while Naidu’s legal battles unfold amidst the scrutiny of the agency’s findings.
