The Crime Investigation Department (CID) of the Andhra Pradesh police is investigating the alleged diversion of funds from the State Digital Corporation to finance the Telugu film Yatra-2, produced ahead of last year’s elections and based on the 2017 padayatra undertaken by YSR Congress Party president Y S Jagan Mohan Reddy.
The issue was raised for serious discussion in the state assembly on Friday.
TDP legislators Dhulipalla Narendra and Kuna Ravikumar questioned how the State Digital Corporation could allocate funds to a film during the YSRCP regime.
State Information and Public Relations Minister Kolusu Parthasarathi confirmed that the matter had first come to light during a vigilance probe and was later handed over to the CID for further investigation.
Legislators demanded departmental action against those responsible if irregularities were proven.
Dhulipalla alleged that nearly ₹50 crore of Digital Corporation funds had been diverted, while Kuna Ravikumar further charged that jobs were distributed in violation of established rules.
Earlier, the vigilance department conducted an inquiry into alleged irregularities in the Andhra Pradesh Digital Corporation (APDC) and uncovered financial mismanagement, recruitment of unqualified individuals, favoritism, corruption, and misuse of authority.
The vigilance report, submitted to the government, stated that the then vice-chairman and managing director of APDC, Chinna Vasudeva Reddy, along with T Vijay Kumar Reddy, M Madhusudhan Reddy, and 18 others, had committed various irregularities. It recommended a deeper probe either by the CID or the Anti-Corruption Bureau (ACB).
A forensic audit of APDC’s accounts and those of the firms associated with it revealed that funds earmarked for one purpose were diverted to another, including payments made to the cast and crew of Yatra-2.
The audit identified that ₹2 crore had been paid to individuals working on the film, including actor Mammootty, who portrayed former chief minister Y S Rajasekhara Reddy.
This expenditure was officially shown as the production of 60 videos, with payments made to Three Autumn Leaves & Astroy LLP.
However, there is no evidence to suggest that such videos were produced and delivered to APDC. On the contrary, bank statements from the firm indicated that payments had gone to the film’s crew, including Mammootty.
The vigilance report named several firms — M/s Data Motif Digital Media, GPR Publications, Deccan Media Works LLP, Sai Nandini Tekno Creations, Shlokh Entertainments, Avisa Media Pvt. Ltd., Sri Sai Advertising, RR Media Advertising, and Three Autumn Leaves — alleging they had committed fraud. It recommended legal action against these firms.
The inquiry also revealed GST evasion by some firms, which claimed funds from APDC for services rendered but failed to remit GST to the government.
The report further implicated Vasudeva Reddy in misuse of power and financial misconduct. It recommended legal action against him and other individuals and firms involved, along with steps to recover ₹37 crore from responsible entities and persons.
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