Former Chief Minister of Andhra Pradesh and National President of the Telugu Desam Party (TDP), N. Chandrababu Naidu, has been arrested in connection with an alleged fraud case involving approximately ₹371 crore.

The case centers around the establishment of clusters of centers of excellence in Andhra Pradesh, with Mr. Naidu being a prime accused in the matter.

The Andhra Pradesh Crime Investigation Department (APCID) took this significant step, confirming Mr. Naidu's arrest on September 9, 2023. Additional DG of A.P. CID, N. Sanjay, disclosed the arrest during a press conference held at the A.P. Police Headquarters in Guntur.

The arrest unfolded when CID officers served notices to Mr. Naidu at the RK Function Hall in Nandyal at 6 a.m. Subsequently, he was taken into custody and is scheduled to be produced in the CID court in Vijayawada on the very same day.

The alleged fraud revolves around the A.P. Skill Development Corporation and spans the years 2014 to 2019, during the TDP's tenure in power. The total estimated project cost amounted to ₹3,300 crore, with the misappropriation totaling ₹371 crore. The initial agreement dictated that Siemens India Software India Pvt Ltd would invest 90%, while the Andhra Pradesh government would contribute the remaining 10%, totaling over ₹3,000 crore, as per a Memorandum of Understanding with the government.

However, it has been revealed that a significant portion of the funds, particularly the ₹371 crore released by the State government, was diverted to shell companies through fake invoices. The investigation uncovered no actual delivery or sale of items, indicating that Mr. Naidu and other TDP leaders were beneficiaries of these misappropriated funds.

The investigation, initially focused on questioning the head of the Skill Development Corporation and the accused shell companies, eventually revealed Mr. Naidu as the prime conspirator orchestrating the transfer of public funds from the government to private companies via shell companies.

According to CID officials, Mr. Naidu possesses exclusive knowledge of the transactions, government orders, and Memorandums of Understanding, making him the central figure of the investigation. Key documents related to the case have gone missing, potentially implicating Mr. Naidu and other prime suspects.

The investigation aims to locate the misappropriated funds, with custodial interrogation of Mr. Naidu deemed essential due to his influential position as the head of a political party and former Chief Minister. Concerns about his ability to influence the course of the investigation led to his arrest.

The involvement of Mr. Naidu as the principal decision-maker to release government funds in advance is evident from statements made by public officials under Section 164 of the CrPC. The charges in the case carry a penalty of more than ten years of imprisonment.

The CID believes that custodial interrogation of Mr. Naidu is essential to uncover all aspects of the financial fraud. Furthermore, the roles of other individuals involved in the case, including Nara Lokesh, Mr. Naidu's son, are subject to further investigation.

It has been noted that central agencies such as the Enforcement Directorate (ED) and GST have already conducted their investigations, and all relevant material evidence will be presented in court. The arrest of Mr. Naidu is seen as necessary to prevent any obstruction of justice or tampering with available evidence, given his former position as Chief Minister and his alleged attempts to thwart the ongoing investigation.