Telugu Desam Legislature Party Deputy leader and former Andhra Pradesh minister K Atchannaidu was taken into custody by state Anti-Corruption Bureau sleuths early on Friday in connection with alleged Rs 151 crore scam in the ESI Corporation.
The member of State Legislative Assembly was taken into custody from his house in Nimmada village in Srikakulam district around 7.30 a.m. He is likely to be produced before a magistrate in Visakhapatnam.
He is allegedly involved in irregularities in procurement of medicines and equipment for Employees' State Insurance (ESI) hospitals during the TDP rule.
In February this year, the Vigilance and Enforcement department had announced that unearthed a major scam in procurement of medicines and other items worth over Rs 975 crore in ESI hospitals by the Insurance Medical Services (IMS) directorate in the last five years.
TDP senior leader Chandrababu's close associate Minister Achchennaidu is reported to have a major role in the scam. Atchannaidu was the Labour Minister in the previous TDP government when the scandal allegedly took place in the procurement of medicines and medical equipment.
Atchannaidu allegedly directed the then IMS director to issue work orders to a company named aTele Health Services Pvt Ltd', without inviting open tenders.
The TDP leader had denied involvement in any irregularities. Meanwhile, TDP president and former chief minister N. Chandrababu Naidu alleged that Atchannaidu was akidnapped' from his house.
The leader of opposition said Chief Minister Y. S. Jagan Mohan Reddy would be responsible for any harm to the former minister.
Naidu demanded the Director General of Police to reveal the whereabouts of Atchannaidu.
(With inputs from agencies)
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