Schuster tried to return AP govt money 2 weeks ago

Dismissed Volkswagen manager Helmuth Schuster, the man who negotiated the controversial deal with Andhra Pradesh, tried in vain to return 2 ...

Dismissed Volkswagen manager Helmuth Schuster, the man who negotiated the controversial deal with Andhra Pradesh, tried in vain to return 2 million Euros to the Y S R Reddy government a fortnight ago, ARD German Radio and TV said today.

According to an ARD statement, Schuster tried to put pressure on business partners in Angola this June to sell a car company there and transfer three million Euros to a finance company linked with the Indian firm Vashishta Wahan.

During a visit to New Delhi end of June—after he was sacked by Volkswagen—the former Skoda manager tried hard for the transfer but didn’t succeed and left India, ARD said.

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Schuster was in charge of the project to set up a VW plant in Andhra Pradesh. On Schuster’s request—in mid-January this year—the AP government released 2 million Euros apparently meant as a first installment for the project.

According to ARD, Schuster pressurised an Indian business partner to transfer the 2 million Euros out of India from Vashishta Wahan. ‘‘The money was transferred abroad through companies registered in Dubai or Switzerland through a supposedly middleman of Schuster. This transaction is indicated in emails from the business partners available with ARD. Since then the money has vanished,’’ the statement said.

Meanwhile, the public prosecuter’s office in Brunswick, Germany, that is investigating the scam welcomed the announcement of a CBI probe by the Andhra government. Chief Minister Y S R Reddy had also relieved Industries Minister Botcha Satyanarayana of his portfolio yesterday.

Attorney Joachim Geyer told ARD that requests for legal assistance outside Germany would follow. ‘‘Obviously, a trace was leading to India. Therefore, a request to Indian authorities for legal assistance would be more than possible,’’ Geyer said.

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According to German investigators, the Indian deal could be of relevance in the investigations against Schuster there. Neither Schuster nor his attorney were available for comment.