Guwahati: N Chandrababu Naidu, the former chief minister of Andhra Pradesh, was arrested on Tuesday morning on charges of masterminding a Rs 371-crore skill development scam.

Naidu was arrested at Nandyal, a town in Andhra Pradesh, following high drama.

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His supporters clashed with police personnel who reached Nandyal to take him into custody. He was eventually arrested and shifted to Vijayawada, the state capital.

The arrest was made by the Andhra Pradesh Crime Investigation Department (CID), which is probing the scam. The CID alleged that Naidu was the “principal conspirator” in the scam and that he had diverted government funds to private entities through shell companies.

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The scam relates to the establishment of six centres of excellence in Andhra Pradesh by the Andhra Pradesh State Skill Development Corporation, which was set up under Naidu’s leadership.

The CID said that Rs 371 crore was disbursed in five instalments within three months even though Siemens had not invested any funds into the project.

Naidu has denied the allegations, calling them “politically motivated”. He has also said that he will challenge the arrest in court.

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The arrest of Naidu is a major political development in Andhra Pradesh.

Naidu is the leader of the Telugu Desam Party (TDP), which is the main opposition party in the state. The TDP has been demanding a CBI probe into the scam.

The arrest is also likely to have a bearing on the upcoming assembly elections in Andhra Pradesh, which are scheduled to be held in 2024.

The TDP is hoping to make a comeback in the elections.