ESI scam: TDP MLA Atchannaidu remanded in judicial custody

Legislator shifted to Guntur Government General Hospital for treatment

K. Atchannaidu.

Former Labour Minister and Tekkali TDP MLA K. Atchannaidu and retired Employees’ State Insurance (ESI) director C.K. Ramesh Kumar were sent to 14 days judicial remand in the ESI scam.

Police shifted the MLA to Guntur Government General Hospital (GGH) for treatment on Saturday amid high security.

The ACB police

arrested the MLA, Mr. Ramesh and four other ESI employees in the scam on Friday.

Police produced the duo in the ACB court, which remanded them in judicial custody on Friday midnight. The remaining would be produced in the court today (June 13), the officials said.

Following the directions of the court, Mr. Atchannaidu was kept in Vijayawada Sub-Jail for a few hours. Later, he was shifted to Guntur GGH and police arranged tight security at the GGH.

About 19 persons, including the former Labour Minister, three retired ESI directors, five joint directors, ESI employees and directors of four companies allegedly violated the rules and resorted to irregularities in purchasing drugs, surgical equipment, furniture, computers and laptops and other material, all worth about ₹988 crore.

The ACB and the Vigilance and Enforcement Office are investigating the multi-crore fraud case.