TDP Leader Atchannaidu Arrested In ESI Scam

On the 12th of June, the Andhra Pradesh (A.P.,) Police arrested Atchannaidu, the former minister of A.P., and a member of the Telugu Desam Party (TDP.)

Mr. Atchannaidu is alleged of an ESI scam  that happened in the Telugu Desam Party (TDP) rule in between 2014-2018.

The Anti Corruption Bureau (ACB) conducted an enquiry and arrested Atchannaidu from his residence in Srikakulam.

According to sources, the arrest came after Y.S.Jagan Mohan Reddy, the Chief Minister of A.P., ordered an ACB enquiry in the ESI scam during TDP reign,

On the 11th of June, Y.S. Jagan Mohan Reddy, during a Cabinet meeting, ordered an ACB enquiry related to the corruptions during the TDP rule in A.P.

A day after, the ACB arrested one of the Members of the Legislative Assembly (MLAs) of the TDP.

The ESI scam related to the Department of Labour has emerged with the vigilance and Enforcement department which exposed this massive scam.  The investigation showed that companies quoted tenders 136 % higher than the actual cost of the drug equipment.

The then IMS directors used to procure medicines from non rate contract firms at a higher price than the actual rate and fabricated quotations to avoid competitive bidding.

while the total budget allocation for the purchase of drugs and medicines during their tenure as directors was Rs 293.51 crores, the directors had purchased the drugs and medicines from Rate Contract and Non-Rate Contract firms worth Rs 698.36 crore.

Speaking about the involvement of Mr. Atchannaidu, he allegedly asked directors of Insurance Medical Services (IMSs) to agive contracts or purchase medicine orders to a particular Hyderabad-based firms.  The directors had allotted the work to the firm without calling for tenders, violating norms of the agreement but was still paid over Rs. 4 crores.

According to the ACB, Mr. Atchannaidu had asked the then director Dr C K Ramesh Kumar to entrust certain purchase orders to Hyderabad-based M/s.Tele Health Services Pvt., Ltd. without calling for tenders. Based on a letter by the minister, Dr C K Ramesh Kumar entered into a Memorandum of Understanding (MoU) with M/s.Tele Health Services Private Limited to provide toll free services and ECG services on nomination basis.

The investigation showed a scam of Rs. 85 crores as the amount was paid illegally. A doctor has been already been arrested in this scam.

According to the ACB investigation, in the past five years of the TDP rule, three IMS directors, Dr. B. Ravi Kumar, Dr. C.K. Ramesh Kumar and Dr. G. Vijaya Kumar violated norms.  They issued purchase orders for the procurement of drugs, medical equipment, surgical items, lab kits and furniture worth Rs. 975.79.

K. Atchannaidu who is in Vijayawada police station would be produced in the court later today, the 12th of June.

Stay tuned for further updates.