The vigilance and enforcement department of Andhra Pradesh government is learnt to have recommended strong against former employees of Andhra Pradesh Digital Corporation (APDC) during the YSR Congress Party government for their alleged irregularities.
The vigilance department, primarily found strong evidence against former vice-chairman and managing director of APDC Chinna Vasudeva Reddy, along with other government employees responsible for financial mismanagement.
The vigilance authorities recommended legal and disciplinary action against those involved, besides a CID and ACB investigation into these irregularities.
The vigilance inquiry found that salaries were paid to non-existent employees, and irregularities were committed in almost every transaction in AP Digital Corporation.
The report revealed that approximately Rs 171 crore was misused over four years, with Rs 139 crore already disbursed.
It found that significant amounts of money were misused under the pretext of video content production, and recommended action against the agencies involved.
The report accused several media and advertising firms, including Data Motif Digital Media, GPR Publications, Deccan Media, Sai Nandini Techno Creations, Shalok Entertainment, Avisa Media Pvt Ltd, Sri Sai Advertising, RR Media Advertising, and Three Atom Leaves, of fraudulent activities that caused financial losses to the government.
The vigilance report also noted GST evasion by Deccan Media and Three Atom Leaves Storytelling Company, recommending rectification of irregularities in cash transactions.
The report held Chinna Vasudeva Reddy responsible for these irregularities, stating that he, the founder of iDream, had employed I-PAC and iDream staff within APDC, misrepresenting them as government employees.
It accused him of playing a key role in hiring unqualified individuals and misappropriating Rs 37.20 crore by making payments to non-existent companies.
Officials named in the report include: former I&PR Commissioner Vijay Kumar Reddy, former APSFSL member Madhusudan Reddy, K Hemachandra Reddy, P Pratap, I&PR CEO Madhusudhan, Chief Digital Director Brahmananda Patra, AP Information Technology Academy official Mothilal Naik and others.
Additionally, the report mentioned that Malayalam actor Mammootty, who acted in the movie Yatra 2, received a Rs 50 lakh payment from APDC.
It alleged that funds were diverted massively under the pretext of video content production and that temporary employees benefited unfairly.
The report also found that some individuals involved in a CBI-arrested case for abusing judges were employed within APDC.