The investigation against Naidu involves allegations that government funds intended for a skill development project were diverted into various shell companies through fraudulent invoices, which did not correspond with the delivery of services.
Naidu was arrested and later remanded to judicial custody in the matter on September 10.
On September 22, the Andhra Pradesh High Court dismissed the a plea by the former Chief Minister to quash the case against him. Justice K Sreenivasa Reddy observed that the acts alleged against Naidu could not be said to be in good faith and in the discharge of his official duties as Chief Minister. Therefore, no prior approval from the competent authority was necessary for an investigation into the offences alleged, the High Court had held.
An appeal against this verdict by Naidu has been reserved for judgment by the Supreme Court.
Meanwhile, the High Court allowed Naidu’s bail plea in the case yesterday, leading to the present appeal before the top court.
Source: Barandbench
