Another high profile official has fallen in a corruption case, with the CBI arresting the Andhra Pradesh Home Secretary for allegedly diluting the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) share in the township without approval from the APIIC board.
B P Acharya was arrested in the case relating to the sale of villas and apartments in Hyderabad, which involved a deal between Emaar and APIIC. The CBI had been questioning him since morning in the case in the Dilkusha Guest House which is the camp office of the agency, the minster was arrested in the afternoon.
He has been charged with cheating, criminal conspiracy and criminal breach of trust under various sections of Indian Penal Code and also under Prevention of Corruption Act, CBI sources said.
Acharya, a senior IAS officer of the 1983 batch, served as the vice chairman and managing director of the APIIC between 2005 and 2009 when its equity was reduced in a joint venture with Dubai-based real estate major Emaar, causing huge losses to the state exchequer. The share of the APICC was reduced from 26% to 6% by Acharya. The CBI says even the villas and apartments were underpriced, causing further losses. Acharya is presently the principal secretary (home).
The CBI had also recently arrested Sunil Reddy who is said to be a close aide of the Kadapa MP Y S Jagan Mohan Reddy, who is the son of late Andhra Pradesh Chief Minster Y S Reddy.
Acharya arrest takes the number of those arrested in the case to three. The CBI will present him in the special court dealing with the CBI cases. He is the fourth accused to be arrested in Emaar case and the second IAS official held on charges of corruption.
IAS official Y. Srilakshmi was last month arrested in an illegal mining case involving former Karnataka minister G. Janardhana Reddy. EHTPL, the joint venture company of Emaar and APIIC, was formed to build a township at Gachibowli in Hyderabad. APPIC had allotted 535 acres prime land for the upscale township.
The CBI Saturday arrested G.G.V. Vijay Raghav, Chief Financial Officer, EHTPL. Earlier, Sunil Reddy, a businessman and an aide of YSR Congress party chief Y.S. Jaganmohan Reddy, was arrested.
Koneru Prasad, an industrialist, was arrested by the CBI in November last year. His Stylish Home, which acted as marketing agency of EHTPL, allegedly siphoned off huge money by selling villas to politicians, businessmen and film personalities at much higher rate than shown on paper.