Supreme Court Relaxes Naidu’s Bail Terms, Greenlights Rally Participation

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In a significant development, the Supreme Court of India has relaxed the bail conditions of N. Chandrababu Naidu, the former Chief Minister of Andhra Pradesh and leader of the Telugu Desam Party (TDP), allowing him to participate in public rallies and meetings. This decision comes amidst the ongoing legal proceedings against Naidu in the skill development scam case.

The Supreme Court’s ruling modifies an earlier directive from the Andhra Pradesh High Court, which had imposed restrictions on Naidu’s public engagements as a condition for his bail. Naidu was implicated in a case involving allegations of diverting government funds meant for a skill development project into various shell companies through fraudulent invoices. These allegations suggest a lack of correspondence between the funds allocated and the delivery of services.

Naidu’s arrest and subsequent judicial custody in September marked a significant turn in the case. The Andhra Pradesh High Court had dismissed Naidu’s plea to quash the case against him on September 22. The Supreme Court is currently reserved for judgment on an appeal against this verdict.

The State of Andhra Pradesh, represented by Senior Advocate Ranjit Kumar, argued that the High Court’s findings were factually incorrect and could prejudice the trial against Naidu. Kumar emphasized,

“No statement should be made in the public domain about this case.”

In response, Naidu’s counsel highlighted the ongoing public statements by officers of the department about issues pending before the top court, arguing,

“If there has to be a restraint, it ought to apply to both sides.”

Senior Advocate Mukul Rohatgi, representing Naidu, vehemently objected to the imposition of restraints on the accused while allowing the government to speak freely.

“Restraint applies to an accused, it can’t apply to the government,”

Rohatgi argued. He also stressed the importance of issuing a notice rather than merely deferring the hearing, pointing out the significant findings in the 40-page bail order and the alleged diversion of 300 crores from public funds.

The Supreme Court, while issuing notice in the plea by the State of Andhra Pradesh challenging the regular bail granted to Naidu, directed the continuation of a bail condition that prevents Naidu from speaking about sub judice matters related to this case in the public domain. However, the court declined to extend the other bail condition that prohibited him from organizing or participating in political rallies or meetings.

Justice Bela M. Trivedi, presiding over the hearing, announced,

“Issue notice. Returnable on December 8. All the conditions imposed by the November 3 order by the high court shall continue except the condition of organizing or participating in public rallies or meetings. List on December 11.”

Naidu, as the 37th accused in the FIR related to the multi-crore scam involving the state skill development corporation, has been a central figure in this high-profile case. The allegations suggest that during TDP’s rule between 2014 and 2019, approximately Rs 371 crore from the Andhra Pradesh Skill Development Corporation was embezzled through fictitious companies.

The Andhra Pradesh High Court, while granting regular bail to Naidu last week, noted that it couldn’t conclusively determine that the misappropriated amounts were diverted to TDP’s bank accounts. The court also observed that Naidu couldn’t be held responsible for the discrepancies highlighted in the Forensic Audit report, which indicated that out of Rs 371 crores, at least Rs 241 crores were misappropriated by SISW and Design Tech, and diverted to various shell companies.

This case continues to be a focal point in Andhra Pradesh’s political and legal landscape, with the Supreme Court’s recent decision marking the latest development in a series of complex legal proceedings.

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Vaibhav Ojha

ADVOCATE | LLM | BBA.LLB | SENIOR LEGAL EDITOR @ LAW CHAKRA

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