The High Court on Wednesday dismissed the bail petitions filed by former minister and MLA K. Atchan Naidu, ESI former director C.K. Ramesh Kumar and two others accused of committing massive irregularities in the procurement of equipment and services for ESI hospitals across the State.
Justice M. Venkata Ramana pronounced the order against the release on bail of Mr. Naidu, who is currently getting treated for complications he developed after undergoing a surgery for fissures, at a private hospital in Guntur.
The Anti-Corruption Bureau (ACB) arrested Mr. Atchan Naidu on June 12 for his alleged involvement in a fraudulent purchase of medicines and equipment and awarding of service contracts in ESI hospitals, which is said to have caused a loss of ₹150 crore to the State exchequer.
Cases were booked under the Prevention of Corruption Act, 1988, Prevention of Corruption (Amendment) Act, 2018 and Sections 409, 420 and 120-B of the Indian Penal Code.
Opposing Mr. Atchan Naidu's plea, Advocate-General S. Sriram argued during the hearing on July 27 that the former minister could hamper the investigation if he was released on bail.
He has suggested that Mr. Atchan Naidu was capable of influencing the probe, going by the certifying of various illnesses from what initially started as fissures.
