Petition Seeking Bail in the ESI Scam Rejected By Andhra Pradesh High Court

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The petitioner filed a petition seeking bail in the ESI scam before the special court for ACB cases. the petition was dismissed by the High Court of Andhra Pradesh on July 29, 2020.

Brief Facts of the Case 

The Anti Corruption Beaurue arrested the former labour minister and TDP leader Assembly Kinjarapu Atchannaidu on June 12, 2020. He was alleged to be involved in the multi-crore Employees State Insurance Corporation scam. 

After completion of police custody, the petitioner seeked bail due to the outbreak of the pandemic. The bail was denied afterwhich the petitioner seeked bail on grounds of his fissure treatment. Despite various attempts the petioner failed to get a bail due to consistent efforts of the respondent oppposing the bail. 

Submissions of the Respondent

The AG submitted that the former minister entered into a contract with tele-health services providing a grant. The grant was made as a tailor-contract. This is in complete violation of the policy laid down. Any contract over the sum of rupees 1 lack must be made in an e-procurement way. It was also submitted that the petitioner made it difficult for the doctors to perform the treatment. The AG stated that the petitioner is being protected by the party making it difficult to continue the investigation. He stated granting bail at this stage will tamper evidence and make the investigation more difficult. He stated that “there was a quid pro quo involved in this case. That would be brought out only if director of Tele Health Services Private Limited B Pramod Reddy, Accused -A3 is arrested .”

Submissions of the Petitioner 

The senior counsel of the petitioner stated that the petitioner directed the director of IMS to grant the contract to the tele-health services. The petioner has submitted that he had acted on the many representations that he received. the act done by him was claimed to be in discharge of his duties. 

Courts decision 

On July 29, the HC held that there is prima facie evidence against the petitioner and struck down the petition. The high court also dismissed similar petitions of C K Ramesh Kumar, who is accused No. 1 in the case, besides that of former minister Pitani Satyanarayana’s personal assistant Murali and Subba Rao. 


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