In an important development in Andhra Pradesh, former Minister K Atchannaidu was on Friday arrested by sleuths of the Anti-Corruption Bureau. Atchannaidu is an MLA of the Telugu Desam Party.

He has been arrested for his "alleged involvement in the Rs 975.79 Cr ESI medical scam." Reports say that two others, along with Naidu, will be produced at a Vijaywada special court later in the day.

Soon after media reports about the arrest started trickling in, the ACB confirmed the news.

What is the scam about?

Earlier in the year, the Vigilance and Enforcement Department claimed that it had discovered a "major scam in the procurement of medicines and other items worth over Rs 975 Cr in Employee State Insurance hospitals by the Insurance Medical Services (IMS) directorate in the last five years (2014-2019)." This is how the news of the scam began.

In the Chandrababu Naidu government, Atchannaidu was the Minister for Labour and Employment. As the then IMS director, he is alleged to have issued work orders to a company named a Tele Health Services Pvt Ltd' without inviting open tenders.

#AndhraPradesh- Former Minister, present TDP MLA Atchannaidu has arrested, by ACB sleuths, for alleged involvement in 975.79 crore rupees ESI medical scam. He and two others (who were arrested) will be produced at Vijaywada special court today. #TDP #YSRCP pic.twitter.com/X8eD9BzN6O

— Rishika Sadam (@RishikaSadam) June 12, 2020