Raju brothers arrested finally

Udumula Sudhakar Reddy

10th jan 2009
The police arrested Mr B. Ramalinga Raju and his brother, Mr B. Rama Raju, late on Friday night for their multi-year Rs 8,000 crore scam. All the directors and chartered accountants of Satyam Computers and PricewaterhouseCooper have been named as accused.
The Satyam chief financial officer, Mr Srinivas Vadlamani, is likely to be arrested on Saturday, said the CID IGP, Mr V.S.K. Kaumudi.
The Rajus drove to the office of the director-general of police to surrender, but the police arrested them to show “tough action”.
The duo is likely to spend the night at the CID malkhana in the DGP’s office complex or at AC Guards and will be produced in front of a magistrate on Saturday.
The police moved after getting a complaint from one Ms Leena Mangat, a former bank employee in the city, sources told this newspaper. In her complaint which conveniently came at just the right time, Ms Mangat told the CID police that she held 200 Satyam shares and Mr Raju’s actions had cost her heavily.
The DGP, Mr S.S.P. Yadav, told this newspaper that cases had been filed under several sections of the IPC including: ? Section 120B, criminal conspiracy. Maximum punishment if convicted could be imprisonment for life or rigorous imprisonment for two years and more. ? Section 420, cheating and dishonestly inducing delivery of property. If convicted, the Rajus face jail up to seven years and a fine. ? Section 409, criminal breach of trust by public servant, or by banker, merchant or agent. If convicted the sentence is imprisonment for life or up to 10 years, besides fine. ? Section 471, fraudulently or dishonestly using as genuine a forged document.
? Section 468, forgery for purpose of cheating. Punishment is imprisonment upto seven years, besides fine.
An arrest under these sections does not preclude other investigations being conducted into the Rajus’ affairs simultaneously by other agencies. Asked whether Mr Raju will be permitted to appear before the Sebi team on Saturday, he said, “We will see how it has to be done.” Mr Kaumudi said that the Rajus stood to get 10 years in jail if convicted.
Since the offences involved are of serious nature, the Raju brothers may not be able to secure bail for at least 14 days. They will be able to move the bail petition only after the Sankranti holidays.
Though the CID conveniently got Ms Mangat’s complaint against Mr Raju just in time, it delayed taking any action.
Things began moving after the Chief Minister, Dr Y.S. Rajasekhar Reddy, returned from Chennai in the evening and convened a meeting with senior officials.
Sources said that Dr Reddy, under immense pressure to clean up the Satyam mess and save India Inc.’s face by showing tough action, gave an earful to senior police officials for not arresting the Rajus. His hand was apparently forced by the Centre which earlier disbanded Satyam’s board and began tightening the screws around Mr Raju.
Besides, sources said Dr Reddy felt hurt when the Opposition began linking his son Jaganmohan Reddy to the Rajus.
The meeting worked out the modalities for the arrest, following which police teams spread out to find the Rajus and located them at their farmhouse at Kompally.
The police drove up there and found to their surprise that the Rajus, armed with legal assistance, were willing to surrender.
The police officials discussed their next action with top officials following which the Raju brothers came to the DGP’s office with a battery of legal experts including Mr Ramalinga Raju’s personal lawyer, Mr S. Bharat Kumar and their aides.
The police barred mediapersons from entering the DGP’s office. The Rajus drove in a convoy of eight cars, four of them Mercedes Benz.
On hearing of the arrest, some investors reached the DGP’s office. One of them, Mr K. Shivashankar, said he had lost Rs 1 lakh in the market.

(with N.Vamsi Srinivas)