The Andhra Pradesh Crime Investigation Department (APCID) has filed another case against the former Chief Minister and Telugu Desam Party national president N. Chandrababu Naidu alleging that he violated rules in AP Fibernet Phase-1 project and reportedly misappropriated government funds for personal gains.
The CID alleged that Mr. Naidu manipulated the tender process to allot the work order for the Phase-1 of the A.P. Fibernet Project of ₹330 crore to a favoured company, by flouting rules.
The CID has registered a case as Cr. No. 24/2021 U/s. 166, 167, 418, 465, 468, 471,409, 506, r/w 120-B IPC and Sec.13(2), r/w 13(1)(C)(D) of Prevention of Corruption Act.1988 of AP CID at Mangalagiri Police Station, as per the case details accessed by The Hindu from the investigation agency.
At the time of alleged offence, Mr. Naidu, the then Chief Minister, was holding the portfolio of Energy, Infrastructure and Investment Department, as per CID reports. Mr. Naidu personally recommended getting the Fibernet project executed by the Energy I&I Department, instead of the I.T. Department, the CID alleged, adding that he appointed Vemuri Harikrishna Prasad, Managing Director of NET India Pvt Ltd, Jubilee Hills, Hyderabad, as a member of the Governing Council-Governance Authority, despite his criminal background.
In addition to that, the investigation agency maintained that Mr. Naidu allegedly gave approval for the estimates of the Fibernet project without considering the fact that no market survey was done for the process of the items or the standards to be followed. He reportedly brought pressure on the senior government officials to include Mr. Vemuri Harikrishna Prasad in various tender evaluation committees and to revoke the blacklisting done by the Government, then prevailing against Terasoftware, as per the CID inquiry.
Further, Mr. Naidu brought pressure on the officials to finally award the tender to Terasoftware by silencing the protests from other bidders such as Pace Power, the CID claimed. He got the officers seeking a fair tender process transferred out unceremoniously and posted more pliable officers in their place, the investigation of CID revealed.
The other accused in the case are Vemuri Hari Krishna Prasad, Managing Director of NET India Pvt Ltd; the then member of the Governing Council, e-Governance Authority, Electronics & IT Agency and Innovation Society, and member of Technical Evolution Committee; Koganti Sambasiva Rao, IRTS, formerly worked as VC&MD INCAP and MD APSFL, presently working as Chief Commercial Manager, Passenger Marketing, South Central Railway, Secunderabad, and a few others are also named as accused persons in the case.
The CID claimed that several irregularities took place from the allotting of tender to till completion of the total project causing huge loss to the government exchequer. Owing to the use of substandard material, violating the conditions and non-adherence to the specifications mentioned in Request for Proposal (RFP) while executing the project, nearly 80% of the capacity of the Optic Fiber Cable was rendered unusable. This was a permanent loss to the lifespan of AP Fibernet. The deviations committed at the time of execution of AP Fibergrid Phase-I contract, caused a loss of about ₹114 crore to the exchequer. There would be further losses caused by expensive operation and maintenance works and loss of revenue owing to 80% unusable optic fiber cable.
The CID allege that the accused channelised the misappropriated funds through a web of companies belonging to their associates, using fake invoices.
