ibnlive » Business

Aug 17, 2009 at 11:40pm IST

Inspect Satyam money-siphoning angle: Govt

New Delhi: The Government has asked Serious Fraud Investigation Office (SFIO), the investigative arm of the Corporate Affairs Ministry, to enquire into siphoning of funds by the scam-ridden Satyam Computer Services.

SFIO, which submitted a detailed report on the Rs 10,000-crore Satyam fraud to the Government in April, will soon begin probe into diversion of funds by the promoters of the company, sources said.

"They (Ministry of Corporate Affairs) have asked SFIO to look at another aspect of the case, that is siphoning of funds...orders for which have been issued on Friday," sources said.

MONEY MATTERS: SFIO submitted a detailed report on the Rs 10,000-crore Satyam fraud.

SFIO's 14,000-page report, they added, have not been able to track the chain of events leading to diversion of funds in the Satyam case.

The investigation body, however, did discover violation of various provisions of the Companies Act and Indian Penal Code and recommended prosecution of promoters of Satyam, including its founder B Ramalinga Raju.

Following admission of accounting fraud by Raju, the Corporate Affairs Ministry had ordered SFIO to probe into the scam.

The IT company, however, was later acquired by Tech Mahindra, a firm belonging to the Mahindra Group through an open tender process.