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CAT stalls suspension of ex-MD of AP Fibernet

CAT stalls suspension of ex-MD of AP Fibernet

Indian Railway Accounts Service officer and former Andhra Pradesh State Fibernet Ltd managing director M Madhusudhan Reddy, who was suspended by the Nara Chandrababu Naidu government on Monday last, has got relief from the Central Administrative Tribunal (CAT).

The Hyderabad bench of the CAT has stayed the suspension of Madhusudhan Reddy until further orders, on the ground that the manner in which the suspension orders were issued was not proper.

The CAT observed that if the government had sufficient evidences to prove that Reddy had indulged in irregularities in AP Fibernet and if it felt that he would tamper with the evidences, it should have suspended him on the day of shifting from the post and asking him to report to the General Administrative Tribunal.

Staying the implementation of GO No. 75 suspending Reddy, the CAT bench issued notices to the state and central governments to file their counter affidavits.

It may be mentioned that on Monday, the Naidu government issues orders seeking to suspend former AP Fibernet managing director Madhusudhan Reddy, an Indian Railway Accounts Service (IRAS) officer brought on deputation to the state by the Jagan government, for alleged corruption.

In the government order (GO), the state government alleged that Madhusudhan Reddy was trying to cover up his corrupt activities, including misuse of public funds, appointment of private persons against rules and tampering of records.

Stating that there were allegations that Reddy had indulged in corruption to the extent of Rs 800 crore, the GO asked him not to leave the headquarters as he had violated the central service rules and till the enquiry against him was completed.

The allegations against Madhusudhan Reddy included enhancement of salary bill from Rs 7.09 crore in 2019 to Rs 48 crore by resorting to indiscriminate appointments and granting of management contract to his own brother for Rs 12 crore per year.

“After the formation of the Naidu government, he made an attempt to destroy all the evidences including files, hard discs and other documents,” the GO said.

Taking strong exception to his suspension, Madhusudhan Reddy moved the CAT, seeking justice. He dismissed the allegations made against him.

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