Vigilance inquiry launched into ₹570-crore ‘scam’ in Swachh Andhra Corporation

Officials, in collusion with contractors, had allegedly swindled the amount using forged documents during the YSRCP government’s term; a three-member committee of IAS officers has been constituted to oversee the investigation

The Vigilance and Enforcement Department, Government of Andhra Pradesh, has initiated an investigation into the irregularities allegedly committed in the Swachh Andhra Corporation during the term of the YSR Congress Party (YSRCP) government between 2019-2024.

The investigation is based on a complaint lodged recently by former MLC A.S. Ramakrishna and former chairman of Guntur Mirchi Yard Mannava Subba Rao, alleging that an amount of ₹570 crore had been swindled.

The two leaders had earlier presented “evidence” to this effect to Chief Minister N. Chandrababu Naidu, prompting him to order a thorough investigation into the allegations.

Vigilance and Enforcement Director General Harish Kumar Gupta has appointed Rajahmundry Superintendent of Police (Vigilance) M. Snehita and Guntur Superintendent of Police (Vigilance) D. Sravan Kumar to lead the inquiry.

Municipal Administration and Urban Development Principal Secretary Anil Kumar Singhal has issued orders constituting a three-member committee of IAS officers, led by Director M. Harinaryanan, to oversee the investigation.

“We have started the investigation. The officers concerned in the Municipal Administration & Urban Development and Panchayat Raj departments have been asked to respond to certain questions related to the case,” Mr. Sravan Kumar told The Hindu on October 25 (Friday).

“We are a 10-member team. We have started investigation recently. I and Mr. Sravan Kumar head the team. We are verifying the documents submitted by the complainants and will take action in the course of time,” Ms. Snehita said.

Meanwhile, Mr. Subba Rao alleged that officials in the corporation had used forged documents to secure tenders worth ₹570 crore. A single owner had created two fake firms and used falsified certificates from three banks to win contracts, he alleged.

The then Chief Engineer of Swachh Andhra Corporation Pujari Ananda Rao, the then Special Chief Secretary (MA&UD) Y. Srilakshmi, and former YSRCP legislator Alla Ramakrishna Reddy were accused of being involved in the scam.

They were accused of colluding with the contractors and committing irregularities in the tender procedure, which reportedly allowed the accused to draw more than ₹200 crore without the required deposits or financial safeguards.

Meanwhile, Mr. Ananda Rao denied having done any wrong in the issue.

“I followed the tender rules and guidelines while awarding or releasing funds to the contractors,” he asserted.

“The tenders were called for only after Judicial Preview and technical evaluation, and money was released after obtaining all certificates as per the guidelines,” he said.

Published - October 25, 2024 08:52 pm IST