ESI scam: TDP former minister Atchannaidu sent to 14-day remand

By Newsmeter Network  Published on  13 Jun 2020 10:17 AM GMT
ESI scam: TDP former minister Atchannaidu sent to 14-day remand

Vijayawada: Former labour minister and TDP leader (Tekkali MLA) Kinjarapu Atchannaidu and retired Employees’ State Insurance (ESI) director Dr C.K. Ramesh Kumar, on Saturday, were sent to 14- day judicial remand in the Rs150-crore ESI scam.

Atchannaidu and six others were arrested by the central investigation unit of Anti-Corruption Bureau (ACB) on Friday from various parts of Andhra Pradesh for their involvement in the multi-crore ESI scam.

On Saturday, Atchannaidu was shifted to Guntur Government General Hospital (GGH) for treatment amid high security.

After the medical tests, the police produced Atchannaidu and Ramesh Kumar in the ACB court which remanded them to judicial custody. The remaining would also be produced in the court.

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Following the directions of the court, Atchannaidu was kept in Vijayawada sub-jail for a few hours. Later, he was shifted to Guntur GGH and police arranged tight security at the hospital.

The ACB officials said a total of 19 persons, including former minister Atchannaidu and three retired ESI directors, five joint directors, ESI employees and directors of four companies, violated the guidelines and indulged in irregularities in purchasing drugs, surgical equipment, furniture and others, all worth Rs 988.77 crore. The ACB officials said that they have found a scam of over Rs150 crore in the entire transactions.

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