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CBI arrests Mahindra Satyam's audit head
Published on Sun, Nov 22, 2009 at 00:58 in Business section
Tags: Satyam Computers, V S Prabhakar Gupta , Hyderabad
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Hyderabad: The Central Bureau of Investigation on Saturday arrested Mahindra Satyam's internal audit head V S Prabhakar Gupta for his alleged involvement in the multi-crore accounting fraud in Satyam Computer.
Gupta, who is senior Vice-President-cum-Global Head of Internal Audit cell in Mahinda Satyam, held the same position in Satyam Computer Services Limited (SCSL).
He was arrested on charges of fabricating account books and co-conspiring with the other accused.
Gupta was later produced in the CBI designated court which sent him to
judicial remand till November 26.
The arrest comes just few days ahead of the CBI preparing to file a second chargesheet, as the team probing the case returned from Mauritius with some bank details.
The CBI team had gone to probe the alleged diversion of funds by disgraced Satyam founder B Ramalinga Raju to Mauritius for re-routing it back to fictitious firms set up by the accused in India, sources said.
Gupta is the 10th accused in the Satyam case.
Ramalinga Raju, the prime accused in the case, his brother and Satyam's former MD Rama Raju, ex-CFO V Srinivas, two auditors of Price Waterhouse and three SCSL employees are already under judicial remand while Suryanaryana Raju (accused No.6) is presently out on anticipatory bail.
Gupta's counsel moved a bail plea in the XIV Additional Chief Metropolitan Magistrate seeking his release on medical grounds and contended that the petitioner is only an employee, and he has no access to business transactions and he is falsely implicated in the case.
Opposing Gupta's bail application, the CBI's counsel said Gupta is one of the co-conspirator in commission of offence in Satyam case and supported other accused for eight years in inflating balance-sheets and manipulating the accounts.
"He (Gupta) was well aware about the fraud, but failed to protect the interests of the investors," the CBI counsel alleged.
After hearing the arguments, the judge K Sudhakar posted the bail petition matter for November 24, while remanding Gupta to judicial custody till November 26.
The CBI, which has set up a Multi-Disciplinary Investigation Team, including officials from the Income Tax Department, Enforcement Directorate, among others filed a chargesheet on April 7 and is likely to file the second chargesheet in the last week of November.
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What about action against the auditors PWC?? Are they too powerful for the Govt. and the Finance ministry? Why even
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Better late than never.
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