The Hindu : Andhra Pradesh News : Scholarship scam: House panel probe ordered

Online edition of India's National Newspaper
Saturday, Dec 11, 2004

Andhra Pradesh

Andhra Pradesh

Scholarship scam: House panel probe ordered

By Our Special Correspondent

HYDERABAD, DEC. 10. Conceding a unanimous demand of all parties, the Government today ordered a fresh House Committee probe into the scholarship scam involving Rs. 42.5 crores which rocked the State earlier and is now before a special court. The issue was referred to a similar House Committee earlier by the Chandrababu Naidu Government but that stood scrapped following dissolution of the 11th Assembly.

Giving the nod for the new panel after a forceful plea was made by parties, including the Congress, in the Assembly during question hour today, the Social Welfare Minister, D. S. Redya Naik, also promised transfer of certain officials if the House Committee so directed. N. Varadarajula Reddy (Congress) listed out 10 such officials who, he said, might jeopardise the inquiry, if not punished.

The Minister said 38 fictitious colleges had claimed this amount as scholarships against non-existent students. The swindling was possible because of the collusion of officials. Out of Rs. 42.5 crores, Rs. 29.6 crores was drawn against "fake" SC students, Rs. 3.8 crores covering STs and Rs. 9.16 crores BC "students".

Mr. Naik said 14 employees belonging to SC/ST/BC Welfare and Finance Departments had been dismissed from service and pension cut imposed on two retired employees. Disciplinary action could be taken against six other retired employees under the Pension Code as they had retired six years earlier but criminal proceedings had been initiated. A sum of Rs. 1.5 crores was frozen in 30 different bank accounts of the accused and properties worth Rs. 41 crores had been attached. All the accused were arrested but bailed out. Three chargesheets were filed before the special court. The Minister said the scam confined to Hyderabad district only. The panel could find out whether there was any scam in other districts too.

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