Four people have been arrested by India's Enforcement Directorate (ED) in connection with a case involving the "diversion and Misutilization of funds worth crores of rupees" that were disbursed by the Andhra Pradesh government for the execution of the 'Siemens Project', according to an announcement by the ED on Tuesday.


The project aimed to provide advanced software and technical skills to the youth, but it was discovered that government funds were swindled to the extent of Rs 241 crores in a dubious manner. The PMLA investigation was initiated based on an FIR registered by the Andhra Pradesh CID.


Those arrested include Soumyadri Shekhar Bose, also known as Suman Bose, the former Managing Director of Siemens Industry Software India Pvt Ltd (SISW), Vikas Vinayak Khanvelkar, the Managing Director of Designtech Systems Pvt Ltd, Mukul Chandra Agrawal, the former financial advisor and authorized signatory of Skillar Enterprises India Pvt Ltd, and Suresh Goyal, a chartered accountant.


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All the accused were presented at a Special PMLA Court in Visakhapatnam, where they were remanded to seven days' custodial remand. The ED investigation revealed the diversion and siphoning off of 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, and services without any genuine supplies.


The purpose of such diversion of funds was to generate cash and siphon off money from the system without utilizing the same for the Siemens Projects for which funds were sanctioned by the Andhra Pradesh government. The ED stated that the money trail of diversion of around Rs 70 crores has been established during the investigation.


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