After Andhra Pradesh on Thursday decided to order a CBI probe into alleged corruption in various schemes during the Chandrababu Naidu government, Telugu Desam Party (TDP) MLA from Tekkali, K Atchannaidu, was on Friday arrested by the Anti-Corruption Bureau (ACB) for his alleged involvement the procurement of medicines for ESI hospitals.

Chief Minister Y S Jagan Mohan Reddy had ordered an investigation into the dealings and contracts awarded by the TDP regime during which the ACB probed alleged irregularities in the procurement of medicines for ESI hospitals.

The state cabinet, which met in Amaravati on Friday under the chairmanship of Chief Minister YS Jagan Mohan Reddy, approved the recommendations made by a cabinet subcommittee in this regard.

The subcommittee, headed by Finance Minister Buggana Rajendranath, conducted a preliminary inquiry into schemes like “Chandranna Tohfa”, “Chandranna Christmas Gift”, “Chandranna Sankranti Kanuka” and also the AP Fibrenet project and submitted its report.

“The cabinet approved the subcommittee report and decided to order a detailed investigation by the CBI,” Information and Public Relations Minister Perni Venkataramaiah told reporters after the meeting.

A minister claimed over Rs 150 crore was swindled in the name of various “festival gift” schemes by the previous regime.

In the AP Fibrenet project, which was meant to provide internet and telephone services to all households, costs were inflated and a person with fake certificates was appointed as the head of the project, the minister alleged.

Also, inferior quality set-top boxes (STBs) were purchased from different companies, sidestepping the lowest bidder (a South Korean firm) that came forward to supply high-end STBs at a lower price, it was alleged.

“This alone cost hundreds of crores to the exchequer while the project remained accomplished,” a minister pointed out. The CBI will also be asked to probe the payments made to Heritage Dairy, owned by Chandrababu Naidu’s family, for supplying buttermilk.