CAR-STRUCK: The Telugu Desam president, N. Chandrababu Naidu, addresses mediapersons on the Volkswagen controversy in Hyderabad on Thursday. K. Vidyadhara Rao and K. Yerran Naidu are also seen. — Photo: P. V. Sivakumar

HYDERABAD: The Telugu Desam Party president, N. Chandrababu Naidu, demanded the widening of the scope of CBI probe ordered into the Volkswagen scandal by including the role played by the Major Industries Minister, Botcha Satyanarayana and others.

Addressing a press conference, Mr. Naidu said merely changing the Minister's portfolio was not a punishment and demanded his dismissal. "It is a big fraud. Some bigwigs in the Government colluded with the top official of the Volkswagen India, Helmut Schuster, to deceive the State. They will have to be brought to book, " he added.

He charged the Chief Minister, Y. S. Rajasekhara Reddy, with shielding the Major Industries Minister like in the case of Endowments Minister when the endowment land scam broke out. This was only to safeguard his post. "The Chief Minister cannot be absolved as he was aware of the dealings. How can he sign a file clearing payment of Rs.11 crores without checking the antecedents of the nominee company and without clearance from RBI? The payment was also in violation of Foreign Exchange Regulation Act," he added.

The TDP president said the inquiry should not be confined to just release of Rs. 11 crores to Vashista Wahan. People who floated Vashista Wahan should be probed into and also whether it was authorised by Volkswagen board to receive money. What was the role played by Ashok Jain and why did he change the company's name from "People's Wahan", to "Vashista Wahan", two days after the release of the money," he asked.

"Why did Mr. Jain quit and nominate Jadadish A. Raja? Was it because Raja was close to the Industries Minister? Will we get back the money? These questions need to be answered," Mr. Naidu said.

Yes to car, no to graft

He wanted the CBI to inquire into the shifting of proposed Volkswagen site and doubling the allotment of land from 150 acres to 350 acres in Visakhapatnam. It should also look into allegations that extensive land was bought by the Minister's relatives near the proposed plant site.

Replying to a question he said he was all for the car major setting up the unit at Visakhapatnam but was only against corrupt practices.

"The scandal has dented the image of Andhra Pradesh and the country, we will have to wait and watch for the project," Mr. Naidu said.

The State council of the Communist Party of India (CPI) welcomed the Government's decision to order a CBI probe into the Volkswagen issue.

The party, too wanted Mr. Satyanarayana, to resign owning moral responsibility.

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