ESI scam: YSRCP Trade Union chief seeks arrest of TDP leader K Atchen Naidu

YSRCP Trade Union president P Gowtham Reddy on Friday demanded the arrest of former labour minister of Andhra Pradesh and TDP leader K Atchen Naidu, for his alleged involvement in the ESI scam. 

He demanded the YS Jagan Mohan Reddy government to expose the Employee’s State Insurance (ESI) scandal, and collect the money deceived by Naidu.

"Andhra Pradesh Vigilance and Enforcement Officials have identified that big scam took place since past six years in purchases of medicines, machinery and furniture.

Those involved in ESI scam in Telangana state are said to be involved in the same scam in Andhra Pradesh too. Further, the then labour minister and TDP leader K Atchen Naidu said that he had followed the procedure like that of Telangana," Reddy told ANI.

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About the ESI scam

Huge irregularities were found in the purchase of medicines and other equipments by the ESI from 2014 to 2019 by the Vigilance Department in Andhra Pradesh.

Upon studying records, the vigilance sleuths found irregularities in the purchases for four ESI hospitals, three diagnostic centres and 78 ESI dispensaries.

K Atchen Naidu, however, dismissed the allegations and accused the ruling YSRCP of indulging in 'mud-slinging' against him in connection with the irregularities in ESI procurements.

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Allegations against TDP leaders

The YSRCP leader alleged that the three companies in which irregularities were found belong to the same person, and those companies were recommended by the then minister K Atchen Naidu.

"Facts will come out if the former minister is arrested and inquired," Reddy said.

Gowtham Reddy also alleged that Rs 300 crores which were allocated to the labour department were used by former Chief Minister and TDP chief N Chandrababu Naidu for the 'Pasupu-Kumkuma' scheme.

He said that the welfare scheme was just launched by the former TDP government before the elections to woo the DWCRA women.

"Misappropriation of those funds also should be inquired," he demanded.

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