Udumula Sudhakar Reddy
11th jan 2009
Raju brothers perhaps slept on the floor Sent to judicial custody till January 23
Mr B. Ramalinga Raju, who authored the Rs 8,000-crore scam at Satyam Computers, and his brother Mr B. Rama Raju perhaps slept on the floor of the Chanchalguda prison on Saturday with 30 persons accused of petty crimes like theft.
At the end of hours of interrogation by CID police and after being remanded to judicial custody till January 23, the Rajus slept on groundsheets and were provided with woollen blankets at the Chanchalguda jail admission barrack.
“They are lodged in the admission block along with 30 other remand prisoners involved in various offences. There is no separate block for them,” said the Chanchalguda jail superintendent, Mr M. Chandrashekar.
“Our doctors examined them as per the magistrate’s order,” he said. A jail official said, “We did not give them food as they came after the end of supper time.” They may have eaten before they were brought to the jail, he said.
An official said, “They will be shifted out of the admission block on Sunday. We segregate them from those accused in violent offences like dacoities and robberies.” The Rajus will be treated as “C-class” prisoners, just like other prisoners, officials said. “Those involved in dowry harassment and cheating cases are categorised soft cases and put in separate barracks,” he said. That is where the Rajus will land up if their bail applications fails.
Earlier, the Rajus were produced before the sixth additional chief metropolitan magistrate at his residence in West Marredpally on Saturday evening, after 18 hours of grilling by the Crime Investigation Department. The magistrate, Mr Ramakrishna, remanded the Rajus to 14 days in judicial custody. The Rajus were brought to the judges quarters from the DGP office complex, where they spent Friday night, at about 5.45 pm. A group of supporters of Mr Raju heckled the media members there.
Mr A. Shivanarayana, the CID additional director-general of police, said, “We have filed a petition seeking police custody.” The police filed a 15-page remand report which included confession of both brothers. Mr Raju’s advocate, Mr S. Bharat Kumar, said, the Rajus had not filed any bail petition. “The case is posted for hearing on Monday. The police has asked the jail doctors to check the health of my clients,” he said. Mr Kumar told the magistrate that Mr Ramalinga Raju was not well.
Earlier, Mr Raju had complained of chest discomfort after he was arrested by the CID on Friday. In a change of practice, police called in doctors from a corporate hospital, instead of taking them there. The doctors said the Rajus’ BP and cholesterol levels were high.
The doctors said there was no need for hospitalisation.
Saturday, 14 March 2009
Probe panel finds evidence
Udumula Sudhakar Reddy
14th jan 2009
Centre orders SFIO to investigate Satyam fraud
The Serious Fraud Investigation Office (SFIO) has affirmed that the Satyam management led by Mr B. Ramalinga Raju was involved in conspiracy, criminal breach of trust, forgery, cheating and violations of the Companies Act and the Securities and Exchange Board of India (Sebi) rules.
Officials of the SFIO, which comes under the ministry of corporate affairs, found prima facie evidence of mammoth fraud during the inspections they carried out in Satyam offices on Tuesday.
The SFIO, set up in 2003, is a multi-disciplinary agency having experts from financial sector, capital market, accountancy, forensic audit, taxation, law, IT and investigation.
An SFIO team led by Mr Puneet Rastogi has been in the city from January 8. Sources said nearly half of the SFIO staff, including top experts, is part of the team. The SFIO additional director, Mr K.V.S. Singh and joint director (banking), Mr Sudhir D. Samant, also arrived in the city for the probe.
Meanwhile, the ministry issued a formal order under Section 235 and 237 of Companies Act to investigate the Satyam fraud case based on the preliminary report of the Registrar of Companies. The corporate affairs minister, Mr Prem Chand Gupta, said in Delhi the SFIO had been asked to submit its probe report in three months.
A senior official said it was clear that the Raju brothers and promoters forged documents and cheated the investors who lost Rs 10,000 crore in the market.
“They will be probed under Section 628 of Companies Act for falsification of balance sheet and under Sebi Act for fraudulent practices and insider trading,” he added.
“All of them — the broth ers, CFO and regular directors—will face prosecution.” However, the 20-member SFIO team in the city will not look into the assets and liabilities of Satyam and its promoters. It will be focused on the account books. An official said that SFIO will not make any arrests in the case.
“The CID will continue its probe and the court may merge both the cases when the charge-sheet is filed,” he added.
This is the first time the SFIO is taking up a case of this magnitude. It usually takes up cases of closed down companies.
14th jan 2009
Centre orders SFIO to investigate Satyam fraud
The Serious Fraud Investigation Office (SFIO) has affirmed that the Satyam management led by Mr B. Ramalinga Raju was involved in conspiracy, criminal breach of trust, forgery, cheating and violations of the Companies Act and the Securities and Exchange Board of India (Sebi) rules.
Officials of the SFIO, which comes under the ministry of corporate affairs, found prima facie evidence of mammoth fraud during the inspections they carried out in Satyam offices on Tuesday.
The SFIO, set up in 2003, is a multi-disciplinary agency having experts from financial sector, capital market, accountancy, forensic audit, taxation, law, IT and investigation.
An SFIO team led by Mr Puneet Rastogi has been in the city from January 8. Sources said nearly half of the SFIO staff, including top experts, is part of the team. The SFIO additional director, Mr K.V.S. Singh and joint director (banking), Mr Sudhir D. Samant, also arrived in the city for the probe.
Meanwhile, the ministry issued a formal order under Section 235 and 237 of Companies Act to investigate the Satyam fraud case based on the preliminary report of the Registrar of Companies. The corporate affairs minister, Mr Prem Chand Gupta, said in Delhi the SFIO had been asked to submit its probe report in three months.
A senior official said it was clear that the Raju brothers and promoters forged documents and cheated the investors who lost Rs 10,000 crore in the market.
“They will be probed under Section 628 of Companies Act for falsification of balance sheet and under Sebi Act for fraudulent practices and insider trading,” he added.
“All of them — the broth ers, CFO and regular directors—will face prosecution.” However, the 20-member SFIO team in the city will not look into the assets and liabilities of Satyam and its promoters. It will be focused on the account books. An official said that SFIO will not make any arrests in the case.
“The CID will continue its probe and the court may merge both the cases when the charge-sheet is filed,” he added.
This is the first time the SFIO is taking up a case of this magnitude. It usually takes up cases of closed down companies.
Raju bought land for sons
Udumula Sudhakar Reddy
13th jan 2009
The Crime Invest igation Department (CID) suspects that Satyam exboss Ramalinga Raju might have diverted the company funds for purchasing assets in companies floated by his sons.
CID sleuths termed the Satyam scam a “monumental fraud” while seeking custody of the Raju broth ers before the sixth additional chief metropolitan magistrate on Monday.
Police have impounded the passports of the Raju brothers as well as the exchief financial officer, Mr V. Srinivas, and are seeking details from banks to freeze their accounts.
The CID also felt that such a gigantic fraud could not have been perpetrated without the connivance of other directors.
According to the investigating officer, the deputy superintendent of police, Mr Balaji Rao, attempts were being made to trace the investments of Raju brothers in other companies.
In the written statement before the magistrate, Mr Balaji Rao said that the two “high profile brothers” had several offices in many foreign countries. “The investments and properties acquired by the accused in many countries are to be elicited,” he said. “They have accounts in various banks in India and abroad, all details have to be collected and scrutinised.” The CID said the brothers had admitted to Rs 8,000crore fraud and Mr Raju had also confessed that his family owned 100 acres of farmland in West Godavari, Krishna and Ranga Reddy districts apart from a grape garden of 20 acres in Ranga Reddy district.
In its remand diary, the CID alleged that the Raju brothers were responsible for fabrication of records and manipulation of accounts books of the company. “It is not possible for a single individual to commit such a massive fraud without the connivance of other directors,” the agency said. “The role of directors and chartered accountants has to be probed.” It turned out, however, that the CID has lifted news reports of banks declining to comment on freezing of Satyam accounts verbatim in the remand dairy.
CID officials have named as witnesses, Mr Karthik Sankaran, 36, a businessman and resident of Golconda Crossroads, Mr Abbas Hussain, 40, of Begumpet and Mr V. Narendar Reddy, a senior assistant in sub registrar office, as witnesses.
Meanwhile, Mr Anil Uttarwar, the head of Maytas Infra’s corporate communications, said that the claim of CID on Mr Raju diverting Satyam funds to companies of his son was false.
13th jan 2009
The Crime Invest igation Department (CID) suspects that Satyam exboss Ramalinga Raju might have diverted the company funds for purchasing assets in companies floated by his sons.
CID sleuths termed the Satyam scam a “monumental fraud” while seeking custody of the Raju broth ers before the sixth additional chief metropolitan magistrate on Monday.
Police have impounded the passports of the Raju brothers as well as the exchief financial officer, Mr V. Srinivas, and are seeking details from banks to freeze their accounts.
The CID also felt that such a gigantic fraud could not have been perpetrated without the connivance of other directors.
According to the investigating officer, the deputy superintendent of police, Mr Balaji Rao, attempts were being made to trace the investments of Raju brothers in other companies.
In the written statement before the magistrate, Mr Balaji Rao said that the two “high profile brothers” had several offices in many foreign countries. “The investments and properties acquired by the accused in many countries are to be elicited,” he said. “They have accounts in various banks in India and abroad, all details have to be collected and scrutinised.” The CID said the brothers had admitted to Rs 8,000crore fraud and Mr Raju had also confessed that his family owned 100 acres of farmland in West Godavari, Krishna and Ranga Reddy districts apart from a grape garden of 20 acres in Ranga Reddy district.
In its remand diary, the CID alleged that the Raju brothers were responsible for fabrication of records and manipulation of accounts books of the company. “It is not possible for a single individual to commit such a massive fraud without the connivance of other directors,” the agency said. “The role of directors and chartered accountants has to be probed.” It turned out, however, that the CID has lifted news reports of banks declining to comment on freezing of Satyam accounts verbatim in the remand dairy.
CID officials have named as witnesses, Mr Karthik Sankaran, 36, a businessman and resident of Golconda Crossroads, Mr Abbas Hussain, 40, of Begumpet and Mr V. Narendar Reddy, a senior assistant in sub registrar office, as witnesses.
Meanwhile, Mr Anil Uttarwar, the head of Maytas Infra’s corporate communications, said that the claim of CID on Mr Raju diverting Satyam funds to companies of his son was false.
Thursday, 12 March 2009
Maytas to be probed : Minister PC Gupta
Udumula Sudhakar Reddy20th jan 2009
The Centre has extended its ongoing probe into the Satyam fraud to cover Maytas Infra and Maytas Properties promoted by the family of Mr B. Ramalinga Raju.
The development came after investigators in Hyderabad reported that the Maytas firms had got hundreds of crores of rupees from a Mauritius-based entity, and that it was alleged by investigating agencies at Satyam funds were used to finance Maytas land purchases.
“The government has approved and authorised the SFIO (Serious Fraud Investigation Office) inspectors to obtain such books, records, papers as they deem necessary from Maytas Properties and Maytas Infra,” the corporate affairs minister, Mr Prem Chand Gupta, told reporters in Delhi.
The SFIO investigation will cover all aspects whether they are directors, board members, banks, creditors, debtors and “whenever they (investigators) feel there is doubt in their mind, they can always expand (scope of probe) it.”
Meanwhile, Mr P.K. Madhav, the chief executive officer of Maytas Infra, resigned on Monday. He is already facing charges in a case relating to defaulting of payments by Nagarjuna Finance, where he was previously employed.
The minister said, “inspectors investigating the matters relating to Satyam have informed about the apparent nexus between the events that have taken place in Satyam and Maytas Properties and Maytas Infra.” On whether the government would supercede the board of Maytas Infra — Maytas Properties is a privately held firm — Mr Gupta said, “whatever is required, government would definitely look into that.” The SFIO has already found that there is huge flow of funds, estimated at hundreds of crores of rupees, from a Mauritius-based firm into Maytas Infra. They are now in the process of tracking how the funds moved.
SFIO officials inspected the account books and documents of eight companies including Maytas Infra and Maytas Properties which are owned by Mr Raju and his family. An official of SFIO said, “Our report says that it is suspected Satyam money was diverted to purchase land for Maytas companies.
The six other companies are not of much interest for us. They are either merged or taken over by Satyam.
SFIO sources said hundreds of crores of money has been pumped into Maytas from Mauritius.
Meanwhile, sleuths of Enforcement Directorate and Directorate of Revenue Intelligence sleuths met Registrar of Companies and sought details on the Satyam case.
Sleuths are also looking into hawala angle in the entire episode.
SFIO to check 60 Satyam servers
Udumula Sudhakar Reddy16th jan 2009
‘ SFIO will col- lect details from RBI and Director of ‘ Revenue Intel- ligence on export earnings.
Cyber forensic experts of the Serious Fraud Investigation Office (SFIO) will be checking around 60 servers of Satyam in various spots around the world including London and Budapest.
Satyam has clients in around 65 countries and SFIO officials want to check each server for vital clues. “It is a big task,” said an investigating official.
On Thursday, SFIO sleuths conducted searches in the offices of Satyam at Begumpet and Madhapur. The SFIO team led by the additional director, Mr K.V.S. Singh, also exchanged notes with the Crime Investigation Depart ment team lead by Mr V.S.K. Kaumudi at the office of the director-general of police.
Sources said the documents and other materials seized by the CID team will now be examined by the new auditors, KPMG and Deloitte. An official of Hyderabad Registrar of Companies said that since the ministry of corporate affairs had ordered the SFIO probe under Section 235 and 237 of Companies Act, Satyam would have to allow investigators to access all information.
“The corporate veil has been lifted and there will be no secrecy,” said the source. “Bankers and auditors will have to cooperate too. The client confidentially clause cannot be cited.” SFIO is now focusing mainly on how the ex-chairman, Mr Ramalinga Raju, manipulated balance sheets and whether there was insider trading and diversion of funds. The CID team is meanwhile engrossed in seizing as many as documents of Satyam as possible. SFIO will also be collecting details from RBI and Director of Revenue Intelli gence on export earnings. Meanwhile, the Satyam interim CEO, Mr Ram Mynampati, who is in the United States, told CID investigators who called him up that he would soon come back and cooperate with the probe. Mr Mynampati, who is also facing a probe, told the CID that he went to the US to meet a client.
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