Former Andhra Pradesh minister and TDP MLA K Atchannaidu was arrested today by Anti-Corruption Bureau (ACB) officials from his residence at Srikakulam for his alleged involvement in the multicrore Employees’ State Insurance Corporation (ESIC) scam, prompting former chief minister and TDP president to N Chandrababu Naidu to accuse the YSRCP government of resorting to “political vendetta”.
Atchannaidu, considered close to Naidu was the labour minister in the previous TDP regime and was named in a probe by vigilance and enforcement department which investigated alleged irregularities in procurement of drugs and medical equipment between 2014 and 2019, including setting up of a tele-health services.
The ACB team lead by DSP and accompanied by local police arrived at the TDP MLA’s residence at Nimmada village in Srkakulam at 7:20 am and videos showed police personnel scaling the wall of his residence. An angry TDP president termed the arrest as “kidnapping”and alleged some 100 police personnel were present and phone connections were cut off to ensure Atchannaidu was unable to inform even his family members.
Later on Atchannaidu had written a letter dated 25 November, 2016 to director of Insurance Medical Services and ordered him to enter into a memorandum of understanding with a private firm TeleHealth Services to set up ECG centres at all ESI hospitals and dispensaries.Regional Joint Director of ACB, Vizag, PV Ravi Kumar said five others, including former director of Directorate of Insurance and Medical Services, CK Ramesh Kumar, were also arrested from Rajahmundry, Vijayawada as well Tirupati. During investigation it was found Rs 150 crore was misappropriated in the process of procurement of medicines and equipment worth Rs 988 crore .”
Around 19 officials and private individuals were found involved in the scam. Fictitious firms were set up in the name of staff members, forged letterheads and fake bills were used to misappropriate government funds.
TDP president Naidu alleged that the sitting MLA and TDP’s deputy leader in the Assembly was arrested without any evidence. He pointed out that the MLA was arrested just four days prior to the Assembly session without any notice. BJP state unit chief Kanna Lakshmi Narayana supported the arrest but reminded the CM similar action should be taken against YSRCP leaders involved in sand smuggling.