The Andhra Pradesh High Court granted bail to former Andhra Minister and TDP MLA K Atchannaidu on Friday who had been arrested in an alleged Rs 151 crore scam in the ESI Corporation. As per reports, the court has asked Atchannaidu to deposit an amount of Rs 2 lakhs as surety and ordered not to leave the country without the court’s permission.
As earlier reported by TNM, the former state Minister for Labour and Employment Kinjarapu Atchannaidu had been arrested on June 12 by Anti-Corruption Bureau (ACB) officials for his involvement in the alleged corruption in the acquirement of medical supplies for Employees State Insurance (ESI) hospitals in the state during his previous TDP regime in the state.
The ACB claimed that during the five-year tenure of Telugu Desam Party (TDP) from 2014 to 2019, when Atchannaidu was Labour Minister, there were several irregularities in the procurement of medicines, surgical equipment and furniture for ESI hospitals, ESI diagnostic centres and ESI dispensaries spread across Andhra Pradesh, causing a loss of Rs 155 crore to the state exchequer.
According to reports, the former minister had tested positive for coronavirus after which he was admitted to NRI Hospital in Guntur on August 22.
The ACB said that three directors had made DIMS purchases without constituting a drug procurement committee and without calling for open tenders.
The directors have been accused of fabricating quotations for the tenders and paying excess amounts without negotiating rates. They also allegedly purchased drugs and medicines worth Rs 698.36 crore, when the total budget allocation was Rs 293.51 crore.
The ACB further said that some of the staff of the DIMS using their official positions, established benami firms in the name of their family members and got purchase orders for the supply of medicines and drugs.
In total, the ACB said that the scam is worth Rs 988.77 crore. Teams have been formed to arrest the remaining accused in the case.
With IANS inputs
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