The scam allegedly happened when Naidu was holding the portfolio of energy, infrastructure and investment department.
Fibernet scam is a case of alleged manipulation of the tender process to allot the work order for the Phase-1 of the AP fibernet Project of Rs 330 cr to a favored company, by flouting the rules and manipulating the tender process.
The tender was awarded to Terasoftware by silencing the protests from other bidders such as Pace Power.
This is the third case in which Naidu was named accused and CID filed a prisoner transit warrant.
CID alleged that several irregularities took place from the allotting of tender till completion of the total project causing huge loss to the government exchequer.
Owing to the use of substandard material, violating the conditions and non-adherence to the specifications mentioned in RFP while executing the project, nearly 80% of the capacity of the Optic Fiber Cable was rendered unusable.
This is a permanent loss to the life span of AP Fiber net.
The deviations committed at the time of execution of AP Fibergrid Phase-I contract caused a loss of about Rs 114 crore to the government exchequer.
There would be further losses caused by expensive operation and maintenance works and loss of revenue owing to 80% unusable optic fiber.
The accused channelized the misappropriated funds through a web of companies belonging to their associates, using fake invoices.
AP CID alleged that Naidu has personally recommended getting the fiber net project executed by the energy infrastructure Department, instead of the IT department.
”Naidu has got Vemuri Harikrishna Prasad appointed as a member of governing council-governance authority. Despite his background N Chandrababu Naidu gave approval for the estimates of the fiber net project without considering the fact that no market survey was done for the process of the items or the standards to be followed. N Chandra Babu Naidu brought pressure on the senior government officials to include Vemuri Harikrishna Prasad in various tender evaluation committees.”
He allegedly revoked the blacklisting done by the government, then prevailing against Terasoftware.
The CID alleged “Naidu got the officers seeking a fair tender process transferred out unceremoniously and posted more pliable officers in their place.”
The CID said in the FIR that the last date of submission of the bid was extended with mala fide intention from July 31, 2015, to August 7, 2015.
“This was done in order to facilitate Tera Software to form a consortium and to participate in the bid. The company did not even have the required consortium as on July 31 as mentioned in the initial tender document,” the CID alleged.
CID also accused Hari Krishna Prasad, managing director of NET INDIA, Jubilee Hills, Hyderabad, the then member of the governing council, e-governance authority, electronics & IT agency and innovation society, and member of technical evolution committee and Koganti Sambasiva Rao, IRTS, formerly worked as MD APSFL, presently working with South Central Railway, Secunderabad, and others of being involved in the scam.
The case was booked in 2021 under the IPC sections of cheating, forgery, criminal breach of trust, criminal conspiracy and Prevention of Corruption Act (PCA).
Watch Vehicle carrying breakfast for N Chandrababu Naidu reaches Rajahmundry prison