ED Uncovers International Money Trail in Andhra Pradesh Skill Development Scam
In a significant development in the ongoing investigation into the skill development scam in Andhra Pradesh, the Enforcement Directorate (ED) has filed a supplementary chargesheet revealing that funds meant for establishing Centres of Excellence for unemployed youth were diverted to foreign entities in Singapore and the United Kingdom.
Foreign Remittances to Hospitality and Forex Ventures
The ED's prosecution complaint, recently submitted to the Prevention of Money Laundering Act (PMLA) court in Visakhapatnam, alleges that public money intended for skill training programs was routed to Ben Research and Inkfish Hospitality in Singapore, and to SKGWORLS Forex in the UK. This highlights the ironic diversion of funds from domestic skill development to overseas hospitality and foreign exchange ventures.
The investigation traced specific outward remittances from Skillar Enterprises India (SEPL) totaling approximately 3.4 crore rupees to Ben Research, 74 lakh rupees to Inkfish Hospitality, and 73 lakh rupees to SKGWORLS Forex in the UK. The ED claims that Mukul Agarwal made an investment in the UK entity while serving as an authorized signatory for SEPL's bank accounts.
Connections to Former Siemens Executive
The supplementary chargesheet establishes alleged linkages between the Singapore-based entities and accused individual Soumyadri Sekhar Bose, also known as Suman Bose, the former Managing Director and CEO of Siemens Industry Software India. According to the ED, Ben Research belonged to T Sivakumar, a former Siemens employee described as a close associate of Bose.
The complaint further states that individuals who had previously worked under Bose were appointed as directors in these foreign firms, suggesting a coordinated effort to channel funds internationally.
Questionable Incorporation and Control of SEPL
The ED's prosecution complaint reveals that SEPL, originally incorporated as PVSP IT Skills Projects on July 30, 2015, came into existence just one month after the tripartite agreement was signed in June 2015 between the Andhra Pradesh State Skill Development Corporation (APSSDC), Siemens Industry Software (SISW), and Designtech Systems (DTSPL).
Despite having no prior work experience, no demonstrated expertise, and no genuine business operations, SEPL allegedly became the primary conduit for diverting approximately 243 crore rupees in government funds transferred from DTSPL. These funds were originally allocated for establishing Centres of Excellence and Technical Skill Development Institutions across Andhra Pradesh.
The complaint asserts that SEPL was completely under the control of Bose and Agarwal, with Agarwal maintaining significant authority over the company's ICICI Bank and Axis Bank accounts despite not being listed as a director.
Complex Layering Through Shell Entities
Between December 2015 and March 2016, APSSDC disbursed approximately 371 crore rupees to DTSPL, which then transferred a substantial portion through SEPL. These transfers were justified with claims for subcontract work including training software development and royalty and subscription payments, supported by what the ED describes as concocted and fabricated invoices.
The managing director of DTSPL later admitted there was no evidence of services actually received, according to the prosecution complaint.
From SEPL, the ED traced further diversions to Allied Computers International (Asia) involving about 58 crore rupees, and to three additional entities—Patrick Info Services, ITsmith Solutions, and Inweb Services—through turnover entries designed to create a genuine appearance for bogus billing practices.
The investigation also identified transfers to Knowledge Podium Systems (approximately 38 crore rupees) and Cadence Partners LLP (about 17 crore rupees), which the ED alleges were linked to Agarwal's family members.
Proceeds of Crime Identified
The foreign remittances uncovered in this investigation have been classified as part of approximately 151.6 crore rupees identified as proceeds of crime under the Prevention of Money Laundering Act. The supplementary chargesheet represents a comprehensive effort by the Enforcement Directorate to trace the complex international money trail in what began as a domestic skill development initiative.
The Andhra Pradesh State Skill Development Corporation-Siemens project was originally conceived as a public-private partnership aimed at establishing six clusters comprising Centres of Excellence and Technical Skill Development Institutions—totaling 36 centers across Andhra Pradesh—to provide technical training to unemployed youth. However, the project later became embroiled in allegations of substantial financial irregularities that have now extended beyond national borders according to the latest ED findings.
