The Enforcement Directorate (ED) on Tuesday said it has arrested four people in connection with its money laundering probe into the alleged diversion of Andhra Pradesh government funds meant for skilling youths in using advanced software.
Soumyadri Shekhar Bose alias Suman Bose, former managing director (MD) of Siemens Industry Software India Pvt Ltd (SISW), Vikas Vinayak Khanvelkar, MD of Designtech Systems Pvt Ltd, Mukul Chandra Agrawal, former financial advisor and authorised signatory of Skillar Enterprises India Pvt Ltd, and Suresh Goyal, a chartered accountant, have been sent to ED custody by a special Prevention of Money Laundering Act (PMLA) court.
The case pertains to the diversion and misutilisation of crores of funds the state government disbursed for the implementation of "Siemens Projects" in which the government aimed at providing advanced software and technical skills to the local youth.
The money laundering case stems from an Andhra Pradesh CID PMLA regarding the swindling of government money to the extent of Rs 241 crore dubiously, the agency said.
The probe found "diversion and siphoning off government funds given to Designtech Systems Pvt Ltd through Skillar Enterprises India Pvt Ltd and thereafter, through a web of shell companies under the guise of supply of software, hardware, materials, and services without any genuine supplies", it said.
The purpose for such diversion of funds was to generate cash and thereby, siphon off money from the system without utilising the same for the Siemens Projects for which funds were sanctioned by the government of Andhra Pradesh, it said.
The ED said it has "established" a money trail of diversion of around Rs 70 crore till now.