Satyam Scam -- Is CID case a shield or sword on Raju?

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William Shakespeare rightly said, "No need to invent fiction, when the facts are both familiar and dramatic." I think the Satyam case is the perfect example to prove this. From Day-1, the developments in the scam-hit company are so dramatic that Ram Gopal Varma can easily pick it up as a plot for his next movie with Ramalinga Raju's character in the lead role.

I have been closely following the Satyam-issue from the Day-1. Initially, it looked like an ordinary scam to me. It appeared like a case of somebody siphoning off money from a company and then being unable to bear the pressure or guilt, decides to confess everything. But a close study of the entire case indicates that Ramalinga Raju not only masterminded the scam, but also planned the confession and his arrest. I strongly suspect that every movement in Satyam's case is happening according to Raju's script. My suspicion may be wrong, but a close observation of events in the chronological order, strengthens my suspicion.

I think, the real story started on Jan.06 when DSP Merrill Lynch wrote a letter to Satyam Computers terminating its advisory engagement with the company citing accounting irregularities as the reason. Fearing that DSP Merrill Lynch will convey the same information to SEBI the next day, which may expose the real scam, Ramalinga Raju planned his 'confession drama'. However, we still don't know what kind of irregularities the DSP Merrill Lynch in Satyam's account books found. But obviously those revelations would have caused immense damage to Ramalinga Raju and that's why he chose a less painful way of making a voluntary confession.

On Jan.07 at about 10:18 am, DSP Merrill Lynch informs SEBI about the termination of services with Satyam while also mentioning a line about accounting irregularities in the company. Ramalinga Raju's camp gets activated. About 35 minutes later, at about 10:53 am Ramalinga Raju sends his resignation letter to SEBI; at 11:11am the letter gets published on SEBI's website; at 11:24 am company's Managing Director Rama Raju resigns; at 11:34 am Satyam confirms Raju's resignation to SEBI and just 52 seconds later Satyam also inform SEBI about DSP Merrill Lynch's decision. Four letters were faxed in just than 20 minutes. The other developments too are very interesting.

Raju in his confession letter made a suggestion," I suggest that Ram Mynampati be made the Chairman of this Task Force to immediately address some of the operational matters on hand. Ram can also act as an interim CEO reporting to the board." About three hours later, at 2:42 pm, SEBI got another fax from Satyam saying that Ram Mynampati will be the interim CEO of the company. Does this mean that Raju was running the company even after making his shameful confession.

Surprisingly, despite having a confessional statement, no agency including SEBI, filed a criminal complaint against Ramalinga Raju. On the same evening, Andhra Pradesh Chief Minister Dr.Y.S.Rajasekhara Reddy, who was in Delhi, announced that CB-CID would investigate into the matter without even knowing the complete nature of crime and its implications. On Jan.08 at 2.30 pm, SEBI officials went to Ramalinga Raju's house asking him to appear before them at 4 pm the same day. But Raju's lawyer contended that it was too short notice and sought time till the next day. SEBI agreed and Raju was supposed to appear at 4 pm on Jan.10. But Raju never intended to fulfill that commitment. On Jan.9, an investor filed a complaint with the CID against Ramalinga Raju and others. CID immediately reacts and arrests Ramalinga Raju and his brother Rama Raju.

But have a look at the unbelievable pace at which CID worked. On Jan.09, at 8 pm CID receives a complaint from 63-year-old Leena Mangat.

And in just two hours:

* It issued an FIR in Cr.No.2/2009

* Secured the presence of complainant

* Examined and recorded her statement in detail,

* Her statement gets incorporated in case diary

* Secured the presence of 5 marginally noted witnesses

* Examined witnesses, recorded their statements in detail

* Their statements too were incorporated in the case diary

* Raju brothers surrender at 10 pm at Police Headquarters.

This fast pace raises many questions:

* What happened to the CB-CID inquiry that the Chief Minister ordered on Jan.07?

* Has the Chief Minister did not issue any written orders to the CID to register the case?

* Where was Raju at 8 pm, when the complaint was filed?

* It takes at least 30 minutes from his Jubilee Hills residence and at least one hour from his Kompally guesthouse to reach the Police Headquarters at Lakdi-ka-pul?

* Raju's lawyer Bharat Kumar told media that Raju came to Police Headquarters at Lakdi-ka-pul office at 8.30 pm.

* Does this mean that Raju started for the Police Headquarters even before the complaint was officially lodged?

* But if we believe CID's version that he was arrested at 10 pm, then does it mean that Raju started from his home or guesthouse at 9 or 9.30 pm -- much before the CID completed the formalities of filing a case?

* Did the Chief Minister YSR lie when he said in a press conference that a police team was indeed sent to arrest Raju?

* Why did the complainants file their complaint directly to the Addl.DGP of CID by traveling almost 25 kms, without even approaching the local Police Station?

* This case looks unprecedented as normally complaints are filed in a local police station and then they are transferred to the CID for further probe?

* How did police find 5 'marginally noted witnesses' living in different localities in less than two hours?

What happened after the registration of case and arrests too raises suspicion. Raju brothers were kept in the Police Headquarters for almost 16 hours before they were produced to a magistrate at his house in Maredpally. Later they were sent to judicial remand in Chanchalguda Jail. These developments lead to suspicion that Raju facilitated his arrest by the CID only to avoid interrogation by the SEBI who could have easily understood the real scam.

Once he was arrested, he was under the police custody and later in the judicial custody. In both situations, it was impossible for SEBI, an outside agency, to interrogate Raju without taking permission from the court. On Jan.23, a criminal court rejected SEBI's plea to interrogate Raju on technical grounds and now it appears that it will have to wage a long legal battle to get him for interrogation. Similarly, it won't be too easy for the SFIO either to interrogate Raju and others.

At one side, due to CID's case, expert agencies like SEBI and SFIO could not take up the investigation, and on the other side, the constitution of new board for Satyam directly helped Ramalinga Raju. During the hearing of police remand petition, Raju's lawyers contended that Raju has nothing to do with the Satyam Computers as a new board was now running it. Interestingly, it was Andhra Pradesh Chief Minister Rajasekhara Reddy who originally suggested to the Prime Minister to constitute a new board.

Probe by multiple agencies may also help Raju. The CID, SEBI, SFIO and RoC separately conducted raids at Ramalinga Raju's house and offices and seized documents. Now the documentary evidences in this case are scattered and no agency knows what the other agency has seized. In this scenario, none of them will be in a position to complete the probe due to lack of required documentary evidence.

Further, the appointment of the Investigating Officer for this case too may turn controversial. CID DSP N.Balaji Rao is now handling the case. In 2007, he handled a homicide/suicide case in which former Andhra Pradesh Congress president Keshava Rao's son Venkat was an accused. Though Venkat was acquitted in the case, the 2nd Additional Metropolitan Sessions Judge in his judgment, delivered in November 2008, made some remarks about Balaji Rao saying that he gathered evidence in favour of the accused. "N.Balaji, DSP-CID, the investigating officer who completed the investigation, laid the charge sheet. A reading of the charge sheet, except in the introductory part about the nature of the case, did not disclose the result of the investigation that is to say that whether it is a case of homicidal death or suicidal death." The judge further said, "It appears that the investigating agency by filing the charge sheet without coming to any definite conclusion, wants to wash of their hands by sending the accused to the court to face trial. This type of investigation and the collection of material is not expected from the CID police, a premier investigating agency."

The developments in the first phase of CID investigation into the Satyam's case, give clear indications that this case in not moving in the right direction.