Telugu Desam Party MLA from Tekkali, K Atchan Naidu, who served as the labour minister in the TDP government and is considered to be very close to party president Nara Chandrababu Naidu, was arrested by the Anti-Corruption for his alleged involvement the procurement of medicines for ESI- Employment State Insurance hospitals when he was a minister in Nara Chandrababu Naidu Government.
The former Labour minister Atchen Naidu was arrested in connection with the ESI scam which is estimated to be around Rs 900 Cr. ACB sleuths arrested TDP minister Atchen Naidu at his residence in Visakhapatnam in the early hours of Friday. He is being taken to Vijayawada for further probe into the case and likely to be produced in the ACB special court later in the day. ACB sleuths had already arrested Insurance Medical Services director Dr CK Ramesh Kumar in Tirupati who spilled the beans about the involvement of Atchen Naidu.
When Atchen Naidu was the minister, he influenced the ESI director to make purchases of medicines. During the investigation, it was revealed that TDP minister Atchen Naidu, who served as the labour minister during Nara Chandrababu Naidu regime had directed Dr CK Ramesh Kumar to issue work orders to a company named ‘Tele Health Services Pvt Ltd’, without inviting open tenders in the year 2016.