In a significant move, the Andhra Pradesh government, led by Chief Minister N. Chandrababu Naidu, has suspended Madhusudhan Reddy, the former Managing Director of AP Fibernet Corporation. The suspension follows serious allegations of irregularities and violations of central services rules concerning the Fibernet operations.
Madhusudhan Reddy, an IRAS officer from the 2008 batch, has been accused of severe financial misconduct. Reports indicate that over the past five years, the number of Fibernet connections has drastically decreased, while a substantial portion of monthly bill revenues was allegedly redirected to benami accounts. It is claimed that during a 17-month period, approximately ₹14 crore per month was diverted, leading to an estimated total siphoned amount of ₹238 crore.
The state government has issued a formal suspension order against Reddy and is expected to initiate a detailed inquiry into these allegations in the near future.