Volkswagen scam: CBI files charge sheet

After a five-year long investigation, the CBI today finally filed a charge sheet in the Rs11.67-crore Volkswagen scandal in Andhra Pradesh and exonerated former industry minister Botsa Satyanarayana who was at the centre of the controversy.

The scandal surfaced in 2005 and landed the then Congress
government headed by late YS Rajasekhara Reddy in trouble as
it was alleged that the government paid Rs11.67 crore to
Vashishta Vahan Pvt Ltd through "dubious means" for setting up
a car manufacturing unit in the state.

All the Opposition parties had alleged that Satyanarayana and his brother Murali Krishna were directly involved in the scam.

Reddy had changed Satyanarayana's portfolio. Bowing to pressure from the Opposition, the government was forced to order a probe by the Central Bureau of Investigation (CBI).

In the 150-page chargesheet filed in the XIV additional chief metropolitan magistrate (ACMM) court, CBI named seven
persons as the accused, including Helmuth Schuster, a former
official of the German car maker, who have been charged under
Sections 120-B (Criminal Conspiracy) and 420 (Cheating) of
IPC.

The CBI in its charge sheet named seven accused persons who entered into a criminal conspiracy and cheated the Andhra Pradesh government for an amount of Rs 11.67 crore.

"Helmuth Schuster along with other accused persons conspired and cheated Andhra Pradesh government by making them
believe that one Indian Company by name M/s Vashishta Wahan
Pvt Ltd is an Indian nominated Company of M/s Volkswagen AG
Germany and made Andhra Pradesh government participate in
Equity to the tune of Rs11.67 crore (2 million Euros)," the
chargesheet said.

According to the charge sheet, Helmuth Wolfgang Schuster, who has been named as accused No 1 in the case, was a member
of the board of Skoda Auto and also the chairman of Volkswagen
Pension Trust. He was the head of the Volkswagen Indian
Project and was conducting negotiations with Andhra Pradesh
government for setting up a car manufacturing unit in Andhra
Pradesh.

Accused No 2 Ashok Kumar Jain was the Indian Representative of the Volkswagen and was appointed by Volkswagen to assist them in the negotiations in the capacity as chief advisor to the Volkswagen India Project.

According to the CBI, the state government negotiated with Volkswagen AG Germany for setting up a car manufacfuring
project in Andhra Pradesh in 2005 and a series of negotiations
were conducted by the officials of Andhra Pradesh government
with Helmuth Schuster and Ashok Kumar Jain.

Vashishta Wahan Directors Jagadeesh Alaga Raja and BK Chaturvedi and Gayathri Rai, the sister-in-law of Jagadeesh
Alaga Raja are among the other accused persons. Joseph V
George, chairman of Garden City Educational Trust, Bangalore
also figures among the accused.

Schuster and Jagadeesh are absconding, while the rest accused were arrested and are out on bail. An interpol notice was also isued against Schuster.

The CBI said it had conducted the investigation in India and abroad and during its probe Rs 5 crore out of the Rs11.67 crores was recovered. The CBI also carried out probe in Germany and Switzerland by sending Letter Rogatory and claimed to have collected vital evidence showing the complicity of the accused.

Though, the German car maker, subsequently offered to pay back the sum of 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.

The case was registered based on a complaint lodged by former chief secretary of Andhra Pradesh Mohan Kanda.

After filing the charge sheet, CBI superintendent of police H Venkatesh told reporters that 59 witnesses were examined so far in the case and 95 documents supporting the charge sheet running into 3,000 pages has been filed in the court.