What is the multi-crore corruption case in which Chandrababu Naidu was arrested?

In March, the Andhra Pradesh police's CID began an investigation into an alleged scam worth ₹3,300 crore in the APSSDC during the previous administration of the Telugu Desam Party.

Early on Saturday, N Chandrababu Naidu, the former chief minister of Andhra Pradesh and the current president of the Telugu Desam Party (TDP), was arrested in connection with a multi-crore AP State Skill Development Corporation (APSSDC) scam.

Post his arrest, several other TDP leaders have been placed under house arrest as reported by Hindustan Times.

The TDP chief was taken into police custody at approximately 6 am and is currently being transported to Vijayawada.

He was arrested on non-bailable charges under various sections, including 120(B), 166, 167, 418, 420, 465, 468, 471, 409, 201, 109 r/w 34 & 37 IPC of the Prevention of Corruption Act, 1988.

Supporters of TDP gathered in significant numbers and opposed the police's actions, with even SPG forces who were initially protecting the former CM preventing access to Naidu.

What is the AP multi-crore skill development scam?

Back in March, the Andhra Pradesh police's Crime Investigation Department began an investigation into an alleged scam worth ₹3,300 crore in the APSSDC during the previous administration of the Telugu Desam Party.

The inquiry was prompted by notices sent to Arja Srikanth, a former Indian Railway Traffic Service (IRTS) officer who served as APSSDC's CEO in 2016, following statements from an accused turned approver and testimonies from three IAS officers.

During the TDP government's tenure in 2016, a program called APSSDC was established to empower unemployed youth by providing them with skill training to enhance their employability.

Additionally, the program investigation revealed various other inconsistencies. These include the absence of project approval from the Andhra Pradesh cabinet, the failure to invest resources from Siemens Industry Software India (a member of the consortium involved in the MoU signed by the TDP government), and the transferring of project funds into shell companies.

Siemens Industry Software India was given charge with the responsibility of developing six centers of excellence for skill development when the project was launched.

The project manager of the Andhra Pradesh project was fired after an internal investigation by Siemens Global Corporate Office, found that they had redirected government allocated funds to shell businesses through hawala transactions as reported by Hindustan Times.