AMARAVATI: The Anti-Corruption Bureau (ACB) officials On Friday addressed the media after the arrest of Telugu Desam Party (TDP) Tekkali MLA Atchannaidu In scam related to swindling of Employees State Insurance (ESI) funds. ACB Director Ravi Kumar said that TDP MLA had played a key role in the Rs 150 crore ESI scam. Six persons have been arrested in connection with the case so far, including ESI directors Ramesh Kumar and Vijay Kumar, said the ACB chief.

An investigation by the vigilance enforcement department revealed that Atchannaidu was prima facie involved in the ESI scam, he said.
The TDP MLA will be produced in the district magistrate court in Vijayawada on Friday evening. Ravi Kumar told the media that the ACB started investigating the scam based on the detailed report submitted by the vigilance department.

Kumar said that Atchannaidu, the former labour minister, was involved in massive corruption by fabricating bills and that he was arrested only after acquiring prime facie evidence against him in the scam.

The ACB also found out from the vigilance investigation report that the TDP leader is involved in misappropriation of funds to the tune of Rs.150 crores in the process of procuring medicines and other medical equipment.

The ACB offical said that due process was not followed in the allotment of contracts for these purchases. He said that tenders were not called for and instead some companies were favoured by giving the contract for procuring the medicines and other equipment merely on nomination basis which itself is a gross violation of rules and regulations.

The ACB boss once again asserted that Atchannaidu was taken into custody only after getting clinching evidence of his involvement which came to the fore in in the vigilance and enforcement probe.