Atchannaidu involved in Rs 975 crore scam?

Atchannaidu involved in Rs 975 crore scam?

The Vigilance and Enforcement department of AP have busted a huge scam in Employees' State Insurance (ESI) hospital which tunes up to Rs 975 crore. In the preliminary investigation, it is learned that bogus companies have provided fake quotations and took orders from ESI. The more shocking element is former TDP minister Atchannaidu is said to be involved in this scam.

The scandal involved of buying medicine at cost of 136 percent higher than the market price. ESI director Ravi Kumar, Ramesh and Vijay have paid Rs 51 crore to these bogus companies and about six joint directors, senior pharmacists have helped ESI directors in this scam. The bogus companies are Legend Enterprises, Omni Medi and Inventor Performance have received Rs 85 crore in order to supply lab equipment.

In the Vigilance and Enforcement department report, ex-minister Atchannaidu was instrumental in handing over the contracts to these companies in nomination method. In TDP's regime, Atchannaidu was the labour and employment minister and based on his recommendations, ESI directors handed over orders to the bogus companies.

The TDP and Atchannaidu are yet to react on the media reports. The YSRCP government is looking to handover this case to ACB for detailed probe.