AP Skill Case: ED Clean Chit to CM Chandrababu Naidu, Focus Shifts to Firms

The Enforcement Directorate ’s latest supplementary chargesheet in the high-profile Andhra Pradesh skill development case has introduced a major legal shift, stating it found no evidence linking Chief Minister N. Chandrababu Naidu to the alleged money laundering of project funds. The filing, taken cognisance of by the Special PMLA Court in Visakhapatnam, clarifies that while diversion of government funds is under scrutiny, the ED did not establish Naidu’s involvement in handling the proceeds of crime . Consequently, he has not been named as an accused , narrowing the money-laundering dimension of the case as far as the ED probe is concerned.

The controversy traces back to the Andhra Pradesh State Skill Development Corporation initiative, launched between 2014 and 2019 when Naidu led the previous government. The project aimed to enhance employability for youth by establishing advanced Centres of Excellence across the state in collaboration with global technology major Siemens and Indian partner firms including DesignTech Systems Pvt Ltd . The programme envisioned large-scale technical training in engineering design, automation, and industrial technologies, carrying significant financial outlay and political visibility.

The issue turned contentious after the YSR Congress Party assumed power in 2019 and alleged financial irregularities in project execution under the earlier regime. The government claimed public funds were misused through inflated or fabricated invoices and routing via shell entities, initially estimating losses at around ₹300 crore and later suggesting the figure could exceed ₹1,000 crore. Acting on these allegations, the Andhra Pradesh CID registered a case that later formed the basis for the ED’s parallel probe under the Prevention of Money Laundering Act .

In September 2023, Naidu then Leader of the Opposition was arrested by state investigators, triggering intense political confrontation. He spent over 50 days in judicial custody before the High Court granted him bail on October 31, 2023. The episode marked a dramatic phase in state politics and kept the skill development project under national focus.

Following the CID case, the ED initiated a probe focused on tracing the alleged diversion and layering of funds. The agency arrested several private individuals and attached properties valued at roughly ₹54 crore assets attached , identifying financial trails that, it says, indicate unlawful routing of project money. In its latest complaint, the ED has named DesignTech Systems Pvt Ltd, its managing director Vikas Vinayak Khanvelkar, former Siemens Industry Software India executive Soumyadri Shekhar Bose, Mukul Chandra Agarwal, Suresh Goyal, and others as accused.

Legal observers note that the ED’s position does not conclude all dimensions of the broader controversy, as the CID’s original criminal case remains part of the judicial process. However, by stating Naidu was not involved in laundering proceeds, the agency’s filing narrows his exposure under PMLA provisions and shifts prosecutorial focus toward private intermediaries and corporate entities. The Special Court’s cognisance sets the stage for further hearings that will determine the trajectory of the prosecution.

Once a fierce political flashpoint in Andhra Pradesh, the Siemens-linked skill development case now enters a more legally defined phase, with the ED’s findings recalibrating the accountability narrative.