CBI charges Volkswagen ex-official, 5 others with fraud

HYDERABAD - The Central Bureau of Investigation (CBI) Saturday formally filed charges against six people, including former Volkswagen executive Helmuth Schuster, in a fraud case.

The investigating agency, which took up the probe in 2005, filed the 150-page charge sheet in the CBI court here. It examined 59 witnesses.

The name of Andhra Pradesh Minister for Panchayat Raj B. Satyanarayana, however, did not figure in the charge sheet. He was then holding the industries portfolio and had come under allegations from opposition.

The other accused include businessman Jagdish Raja and his sister Gayatri, who in collusion with Schuster had floated a fictitious firm to cheat the Andhra Pradesh government.

They started Vashishta Wahan Private Ltd (the firm’s initials are VW, the same as that of the German car maker) to receive Rs.11 crore from the state government for setting up its plant at Visakhaptanam.

The scam came to light when Volkswagen sacked Schuster, who was negotiating with the state government for setting up the car plant.

Schuster is since on the run, and has been placed on the wanted list of the CBI. An Interpol notice was issued against him in 2005.

Meanwhile, Satyanarayana told reporters that he was relieved at getting the clean chit. He accused the opposition Telugu Desam Party of resorting to character assassination by making baseless allegations against him.