ESI Scam: Andhra Pradesh ACB arrests senior TDP leader, Chandrababu cries vendetta

Former minister and TDP senior leer Kinjarapu Atchen Naidu has been arrested by Andhra Presh Anti Corruption Bureau (ACB) sleuths on Friday for his alleged involvement in Employees State Insurance (ESI) scam.

In wee hours of Friday, ACB teams from Vijayawa and Visakhapatnam bureau gheraoed former minister Atchen Naidu's residence at Nimma in Srikakulam district and arrested him.

A few days ago, ACB authorities arrested former Insurance Medical Services (IMS) director Dr CK Ramesh Kumar in Tirupati. Atchen Naidu was arrested based on Dr. Kumar's confession and available evidence.

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ESI Scam

It was earlier in February that Andhra Presh vigilance and enforcement department uneard a multi-crore scam in purchases of medicines, dispensaries and diagstic centres of ESI-affiliated hospitals.

An investigation by Vigilance and enforcement wing revealed that an amount of Rs 975.79 crore was spent on procuring equipment during previous TDP regime. Atchen Naidu n served as labour and employment minister between 2014 and 2019.

Vigilance authorities revealed that Atchen Naidu h directed Dr Kumar in writing in 2016 to issue work orders to a company named Tele Health Services Pvt Ltd bypassing rms such as inviting open tenders for a contract.

contract required company to provide toll-free services to patients under ESI scheme for assistance in pending medical reimbursements and referral bills.

IMS h n signed a memorandum of understanding (MoU) with Tele Health Services Pvt Ltd and agreed to pay Rs 1.80 per month for each internet protocol (IP) dress, irrespective of number of calls attended. IMS also allegedly signed ar MoU with same company, permitting it to conduct electrocardiogram (ECG) tests for patients under ESI scheme.

According to contract, company was granted Rs 480 for each ECG. same test at a hospital costs about Rs 200.

A probe revealed that service-provider falsely claimed bills by submitting call logs of Telangana IPs, which were t verified by n concerned authorities. private company violated or specified rms such as availing services of post-gruate diploma-holder clinical cardiologists, inste of specialists, who hold a degree in Doctorate of Medicine (DM).

Dr. Kumar along with ar director, Dr G Vijaya Kumar, were found to have paid Rs 4.15 crore and Rs 3.81 crore to company for its toll-free service and ECG tests, respectively.

When vigilance inquiry report came to light, Atchen Naidu pleed incence and said that he only followed Central government's order, which h urged all states to offer telehealth services for patients covered under ESI scheme. He also pointed out example of Telangana government which followed a similar procedure.

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Targetted for exposing Jagan scams: Chandrababu

Immediately after arrest came to light on Friday, TDP president and former chief minister N Chandrababu Naidu blamed Jagan Mohan Reddy government for targetting and harassing Atchan because he was relentless in fighting against ruling party excesses and atrocities in sand, land and liquor scams.

"Jagan Reddy's frustration is evident because he's t confident of facing debates in ensuing budget session of state Assembly. ruling party has valid defence and arguments on issue of multi-crore, multiple scams in land, sand, liquor, mines, coronavirus kits and bleaching powder scams," said Naidu.

TDP chief ded that YCP rule has launched efforts to suppress and weaken backward classes leership in state. "Atchan Naidu's family has got a good name t just in Srikakulam district but all over state. Jagan Mohan Reddy is taking vindictive action against BC leers who are questioning his government's illegal activities," stated Naidu.

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