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CBI files chargesheet in the Volkswagen scam; exonerates min

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Press Trust of India Hyderabad

After a five-year long investigation, the CBI today finally filed a charge sheet in the Rs 11.67 crore Volkswagen scam in Andhra Pradesh, but virtually exonerated Botsa Satyanarayana, who was the state's industry minister then and at the centre of the controversy.

Satyanarayana is currently Panchayat Raj minister.

The 150-page charge sheet, filed in the XIV Additional Chief Metropolitan Magistrate (ACMM) court here, named six persons as the main accused including Helmuth Schuster -- a former official of the German car maker -- and charged them under Sections 120-B (Criminal Conspiracy) and 420 (Cheating) of IPC.

The scandal surfaced in 2005 and landed the then Congress government headed by Y S Rajasekhara Reddy in trouble as it allegedly paid Rs 11.67 crore to Vashishta Vahan  Pvt Ltd, a Special Purpose Vehicle of the German company, floated for setting up a manufacturing unit in Andhra Pradesh.

 

Satyanarayana, who was then the Major Industries Minister, came under the scanner as the money was paid to Vashistha Vahan, through "dubious" means.

Opposition parties had alleged direct involvement of Satyanarayana and his brother Murali Krishna in the scam, but no action was initiated against them.

Reddy retained Botsa in his cabinet and merely changed his portfolio, but the government was forced to order CBI inquiry, bowing to Opposition's pressure.

Though Volkswagen subsequently offered to give Rs 11.67 crore to protect its image, the then Chief Minister refused to take the money till the CBI probe was completed.

Subsequently, the German car maker set up its unit in Maharashtra.

After filing the charge sheet, CBI Superintendent of Police H Venkatesh told reporters that 59 witnesses were examined so far in the case.

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First Published: Sep 25 2010 | 5:12 PM IST

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