KAKINADA: The Chairman of the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) and former MLA, Ambati Rambabu, has confirmed that the corporation had paid Rs.11 crores as State Government's equity to Vashista Wahan for the setting up of Volkswagen company.

At a press conference here on Thursday, he said that the payment was made at the instance of the Government, which issued a special GO in this regard. "The payment was made on January 13, much before I assumed charge as the Chairman. The Government has reimbursed the amount to the APIIC later. There is no anomaly or nothing unusual .We have invested in equity in some joint venture companies in similar fashion," Mr. Rambabu said. However, he was not convincing as to whether the APIIC would effect payment blindly without verifying the bonafidies of a company, that too a company that did not have any address. "The officials would have gone thorough all such formalities before making the payment," was all he could say.

Stating that Helmut Schuster, the Indian representative of the Volkswagen has played a key role in the project since the Telugu Desam regime, Mr. Rambabu said that the Congress Government also continued its efforts by dealing with him to secure the prestigious project.

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